Grains were off substantially as we see improving crop conditions and flight from risky investments following the Brexit results.
The corn belt is looking at temperature in the high eighties low nineties and partly cloudy but precipitation expected. Further south, parts of Kansas are expected to see rain today and scattered thunderstorms and temperatures in the high eighties.
Brazil cuts 700,000 tonnes from corn view after heavy frosts. However, analysts still expect a large crop around 50 million tonnes.
Following the UK’s leave from the EU, we are seeing surges in the gold market up 5 percent, after rising as much as 8.2 percent. The strongest it’s been since March 2014. Oil sharply fell, down 5 percent. Sterling prices are at a 31 year low and the pound reached a 30 year low.
Regardless of the Brexit, some European markets are appearing steady. With Euronext wheat now up 0.25 euro. Also, Russia is planning to to supply China initially with 2-3 million tonnes of grain a year via a grain hub that will be built in Siberia.
A U.S. shipment of wheat was rejected by Egypt. Egypt recently declared they would be allowing a small amount of ergot in wheat shipments, however Egyptian quarantine authorities have refused to let in any wheat affected by ergot. The rejected U.S. shipment tested for a 0.006 percent level of ergot, below the international standard of 0.05 percent. Traders speculate that left unresolved, the ergot issue will translate to higher prices at the next GASC tender.