The spree of data did not end with Thursday’s US Department of Agriculture’s Wasde crop report.
Friday has already brought further statistics, on palm oil, with Malaysia reporting its stocks of the vegetable oil hit 1.87m tonnes last month.
That was well above the 1.74m-tonne figure expected by analysts, and down to a huge jump in production, of 33% month on month.
That palm oil futures for June were down a modest 0.6% at 2,107 ringgit a tonne as of 09:35 UK time (03:35 Chicago time) reflected the fact that they had already fallen 5% since Monday’s close as talk of mega-output grew.
Should palm oil close at this level, it would be the lowest finish in six months.
‘Conditions are very good’
And there are more high profile data yet expected on Friday, from Conab, the official Brazilian crop bureau, on domestic crop production, of which a little bearish reminder is also expected on corn.
Last month, Conab forecast the domestic corn crop at 78.5m tonnes, well above the USDA’s figure of 75.0m tonnes, which was restated in Thursday’s Wasde.
Yet the USDA acknowledged positive factors for Brazil’s second-crop corn, including sowings which had beaten early expectations and good crop health in Mato Grosso, the top second-crop corn state.
“Early season satellite-derived vegetation indices indicate conditions are very good in Mato Grosso,”
(Source – http://www.agrimoney.com/marketreport/morning-markets-soaring-malay-output-sends-palm-oil-lower—3085.html)