Cereal killer ...
A violent spring storm broke out yesterday on the wheat and soybean markets, on the last day of a month decidedly painful for agricultural commodities in general ... The compartment concedes indeed a little more than 12% in March which, by the way, makes the positive performance it has shown since the beginning of the year all the more fascinating; equity investors will appreciate ... By taking a step back, agricultural markets have re-demonstrated by example that - even on raw materials! - Trees do not go up to the sky ; the times and woes of speculation at the little week a tad frantic in recent weeks have simply reduced the prices of the number of underlyings to square one ...
And what happened yesterday on wheat or soybeans ultimately falls largely on the same logic, except that the decline in this case was catalyzed by a series of reports issued by the US Department of Agriculture. agriculture (USDA); according to these reports, the areas planted with wheat and soya on the other side of the Atlantic will be larger than the latest forecast; and most importantly, at the same time, the inventories of both products are revised upwards, quite sharply.
It should be noted that, at the same time, in an umpteenth demonstration of the game of musical chairs governing the dynamics of the grain and oilseed markets, maize is experiencing a strictly opposite evolution, namely a sharp downward revision of both planted areas and stocks. ...
The reaction of the markets has therefore, all in all, been logical: wheat and soybeans closed suspended downward while corn appreciated more than 1% ...
However we will be careful not to bury - it is the case to say - wheat or soya as it is true that when speculators are chopped by hail, the real investors begin to sow, much more serenely, the next crops
