FIS Technical – Grains And Ferts
Beans – slightly firmer on the week on the back of some fund short-covering ahead of tomorrow’s USDA report and some drier weather forecasted for the balance of September. With demand solid and a few weeks more weather to get through, there looks to be some upside potential given we remain in a technically constructive zone…provided there is no bearish shock in tomorrow’s report.
Corn – still looks negative technically, however, there are signs we may be seeing some longer term support. Yield debate continues but eh heavy US and global stocks look likely to maintain a tight fundamental lid on prices.
Wheat – remains very depressed fundamentally and technically.
Urea is still firmly in a bullish technical zone with the 200 day moving average in AG / M.East in play, though, our work suggests it may take a pause for breath between 237 and 240 before making a move towards this target. The normal Indian tender negotiations could well support this short-term assessment.