Bunge, according to Reuters is on the verge of a cash and stock deal to merge with Glencore backed Viterra to create an agricultural trading giant worth more than $30B including debt.
Viterra / Glencore shareholders reportedly may sign off on the deal as soon as this weekend.
Wheat recovers after momentary drop
Wheat futures showed Wednesday’s close was just a blip as the short term run of higher closes resumed which for CBOT has been 6 out of the last 7 closes totalling +33.50c on the July contract.
Aussie wheat exports were down in the month of April to 3MMT vs 3.8MMT in March.
China’s imports were down slightly to 990k.
The June WASDE is out today with analysts estimates tipping for a slight increase in US wheat production to 1.672bbu (45.5MMT) from 1.659bbu (45.15MMT) in the May report.
The lone Russian wheat exporter that offered below a FOB price of $240 at $229 into GASC has reportedly tried backed out of the sale but no official announcement from GASC but have threatened to cash Agric’s $400k performance bond if the do not execute the contract. Traders have instead moved to offering on a destination basis into MENA markets with CFR offers the equivalent of $15-20/mt under the unofficial floor price of $240/mt.
The soybean complex is holding stronger this morning pre USDA with supplies still a bit tighter there than in corn, despite flailing exports.
The USDA is expected to again cut their Argentine crop estimates but the Buenos Aires Exchange is now down to just 21 MMT on soybeans, 6 MMT below the May S&D.
BRZ estimates are again seen making up part of that loss.
French soft wheat condition ratings fell again this week, to 88% good/ excellent; that’s down from 91% last week and 93% two weeks ago, though still above 66% on this date last year and the best at this point since at least 2011. Corn ratings fell four points WoW, also down to 88%g/ex.
Mpls wheat -2
KC wheat -4
Chic wheat +3
Matif wheat +2
Soybean oil +16