Overview of currency and futures markets:
Prices were mixed for grain and oilseeds in a stagnant session.
- CBOT Wheat May contract was up .5c at 436.5c,
- Kansas wheat up 4.25c to 453.5c,
- corn up 1.5c to 367.5c,
- soybeans down 1.5c to 1000.0c,
- Winnipeg canola down -2.01$C to 503.7$C,
- Matif canola up 0.5€ to 407.5€.
- The Dow Jones down -19.93 to 20914.62,
- Crude Oil down -.08c to 48.69c,
- AUD up to 0.797c,
- CAD up to 1.3344c, (AUDCAD 1.0273)
- EUR up to 1.0736c (AUDEUR 0.7169).
Canola lower again, despite stronger palm oil pricing, as technical selling dominates.
Corn was also quiet, closing slightly higher in a stagnant session. It did manage to close above its 100 day moving average in the nearby contract, which adds strength to the technical picture. The Commitment of Traders report had the corn position reverse from 65.4 to -25.4k contracts. Despite the large production in South America, the US markets should be supported at these levels, due to a lack of grower selling, ongoing internal consumption and new crop production volatility.
The weather forecast for the week looks to provide a good soaking to most of NSW and parts of Victoria, which will assist winter crop planting decisions. Last week saw good rainfall for NNSW and QLD, so far seasonal conditions are not respecting dry three month forecast by the BOM. In spite of this prices remain reasonably strong, as grower liquidity has dried up and traders still need to fill boats.
Source: Lachstock Consulting