Spain: The arrival of the harvest puts an end to the rebounds in the market

In recent weeks there have been significant increases in prices, mainly due to the movements made by large investment funds, which were in a 'short' situation, with more sales made than purchases, and which have chosen to make acquisitions. The so-called 'weather market' plays an important role here. The hints of drought have had an influence, with a reduction in harvest expectations in different producing regions. The USDA report points to a reduction in global wheat stocks, with a drop in production in giants such as Russia and Ukraine, while forecasts are somewhat more optimistic for Argentina or India. In the case of corn, global stocks could also be reduced, with a drop in production in countries like Brazil or, again, Ukraine. In reality, these increases have no real support and have not been transferred to the physical, since buyers are covered. The national market is paralyzed, given that there is coverage until the new harvest; Buyers know that stocks from last year's ...