Markets

Daily Market Wire 3 November 2021

Lachstock Consulting, November 3, 2021

Overnight US grains weakened around 1pc. Black Sea and European strengthened. Rapeseed gained 1pc; canola double that.

  • Chicago wheat December contract down US5.75c/bu to 791.50c/bu;
  • Kansas wheat December contract down 8.25c/bu to 798.25c/bu;
  • Minneapolis wheat December unchanged at 1075.5c/bu;
  • MATIF wheat December contract up  €1.50/t to €292.75/t;
  • Corn December contract down 6c/bu to 573c/bu;
  • Soybeans January contract up 7.75c/bu to 1256.25c/bu;
  • Winnipeg canola January 2022 contract up C$20.60/t to $990.80/t;
  • MATIF rapeseed February 2022 contract up €6.50/t to €695.75/t;
  • US dollar index was up 0.2 to 94.1;
  • AUD weaker at US$0.743;
  • CAD weaker at $1.2411;
  • EUR weaker at $1.158;
  • ASX wheat January 2022 up A$4.50/t to $339.50/t;
  • ASX wheat January 2023 up $5/t to $361/t.

International

The Chinese Ministry of Commerce has urged local authorities to ensure there is adequate food supply during the winter and the encourage people to stock up with essentials. With energy shortages and a fresh round of coronavirus lockdowns there is general fear about the ability to access staples such as vegetables which has forced prices higher.

The Aussie dollar came under pressure after the RBA Governor Philip Lowe said it was still “likely to take some time” for inflation to return to target.

The Baltic Dry Shipping index fell another 91 points yesterday to close at 3428 points. The index is now 39.3pc off the highs printed back in early October.

US ethanol trade group Growth Energy plans to sue the US EPA over an alleged “failure to fulfil the agency’s statutory obligation” as it has delayed the proposed biofuel blending rules for 2022. Ethanol accounts for just over 40pc of total domestic corn use in the US.

Mosaic Co, the world’s largest phosphate producer, expects the fertiliser price surge to continue. In a company statement it indicated 90pc of fourth quarter sales are committed and priced but did acknowledge the impact of changing cropping rotations are still being ascertained.

Canola futures, while elevated, have been losing ground to the amazing run in spring wheat futures. With nitrogen prices ramping higher and glyphosate near impossible to source the speculators have decided canola will struggle in the acreage war.

Australia

Yesterday’s Melbourne Cup race carnival saw the Victorian trade out of action for the day. Cash wheat bids were a touch firmer in northern and central NSW as protein bids rose $4-5/t. Barley and canola bids were also higher.

Harvest pace continues to ramp up along the east coast. GrainCorp reported strong receivals at 1.5 million tonnes all commodities while in South Australia the Viterra system has received 43,500t and WA CBH 760,000t.

Rain pushing through South Australia and Victoria today is expected to slow harvest progress, particularly in the north east of SA.

 

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