The Argentine strikes continue, with a new contract proposal being considered today. Absence of positive news regarding the talks is likely helping the market higher. An estimated 170 vessels are now backed up waiting to load. There has also been talk of ongoing dryness in Argentina and parts of Brazil.
March futures are now even with May and the highest of all contracts on the board, the market’s way of encouraging spot sales and discouraging storage. Storage has paid well to date, however! A wire report shows 30,000 MT (10 million gal) of US ethanol is set to unload in China this month, with another 80,000 MT (26.8 million gal) set for January. Wednesday’s EIA report is expected to show ethanol production back off from last week, with stocks seeing another week of building.
Argentine sources indicate that 10 of the vessels caught up in the Argentine strikes are supposed to take wheat to Brazil. The US is considered an alternate source if the strike drags on. A Taiwan tender for 82,325 MT of US wheat is set to close on Wednesday. Russia’s SovEcon consulting firm trimmed their 20/21 wheat export forecast for the country by 4.5 MMT to 36.3 MMT.
PRICE MOVEMENT ON CBOT DEC 29