Egypt, the world's top wheat importer, suffered a double mark-up on its latest wheat tender as it paid a premium for uncertainty over its customs policy, besides higher shipping costs, which are soaring worldwide.
Significant macroeconomic developments in global markets during the month of August, expectations for FED and ECB policies, geopolitical developments from North Korea, and political news in the US influenced financial asset pricing.
Last week we talked about choice box meat going under select. This generally means that the packer doesn't care whether he procures choice or select because the profit margin is going to be about the same.
Australia slashed more than 2.7m tonnes from its wheat export forecast, making deep cuts to expectations for canola and coarse grain shipments too, as it counted the cost of drought damage to its crops.
Hedge funds ended a bearish betting spree on ags dating back to July, despite higher-than-forecast crop supply estimates in a much-watched report – sparing themselves losses, indeed, to price resilience since.
Cotton futures in the December contract are currently higher by 30 points at 69.38 as I'm not involved in this commodity at the present time as I'm advising clients to avoid as the chart structure is absolutely horrendous as prices hit a contract high on September 8th at 75.75 only to come crashing down to today's price level due to the fact that the hurricanes had no impact on cotton production.
The past eight weeks have been a blur. We have been in Vancouver, Victoria, Alaska, Boston, South Africa (Zulu Nyala, Cape Town, Umhlanga, Stellenbosch, Franschhoek, Jeffreys Bay, Durban, Wilderness, etc.), Boston (again), and New York City.