London, January 22, 2015 - The Chicago overnight market closed higher across the board. No major news was released and traders are waiting for directionality in the markets.
Yesterday managed funds were not really active either, their reported trading volumes are as following: bought 500 wheat, 1,200 beans 1,300 soymeal and sold 2,000 corn 1,500 soyoil.
Analysts and brokers saw corn 1-2 cents higher, soybeans 7-9 cents higher and wheat 5-7 cents higher on their pre-market calls. News and stories are actually pretty light and mixed, so trend followers should be waiting before entering new positions.
On the international tender market South Korea bought corn from the Black Sea as US corn is not competitive enough. Traders are now expecting more cancellations of US shipments from China. These expectations being already priced in, markets should not react too much to new Chinese announcements. No US Export sales were released today since the USDA had postponed the release until tomorrow. Tomorrow is also the day of the February options expiries. Chartists and technical traders should look at the $9.80 and $10.00 levels in soybean. Most of the options volumes being puts on these strikes.
South American countries seems to be still on track for record harvests, with continuous good weather news. Brazilian soybean meal prices are now up due to weaker Brazilian Real and stronger US Dollar.
On the outside markets, the ECB left its interest rates unchanged as expected. Canadian dollars is still lower following the rate cut by the Canadian central bank. This should help Canadian grain exporters. Read our cash prices section for daily Canadian and World cash prices.
Demeter Commodities