From Agrimoney.com
While traders cited continuing pressure on prices from funds selling up, and farmer selling, the prospect of a weak grain harvest in Western Australia, Australia's top grain state, was helping keep bulls' hopes alive.Drought is expected to cut by 33% to 5.5m tonnes, the state's wheat harvest, the Western Australia Grains Industry Association said.
While some farms had received some rain last week, "soil moisture assessment shows that most areas have little, if any, available moisture to sustain plant growth", the association said.
"Should the current pattern of irregular rain with lengthy fine spells continue, it is likely that production estimates will be revised downward further in September," the group added, in a report the day after the Australian Oilseeds Federation also warned over the state's plight.
Prices have broken their primary uptrend (a) at (c). In addition, note the shorter EMAs have moved lower (b).
However, prices are nowhere near the highs achieved a few years ago.
