Markets

Daily Market Wire 8 December 2021

Lachstock Consulting, December 8, 2021

Rapeseed gained 2pc. Corn and wheat markets gained less than 1pc. Canola and soybeans fell in fractions.

  • Chicago wheat March contract up US2.25 cents per bushel to 808.5c/bu;
  • Kansas wheat March contract up 5c/bu to 827.5c/bu;
  • Minneapolis wheat March up 8.75c/bu to 1036.5c/bu;
  • MATIF wheat March contract unchanged at €291.75/t;
  • Corn March contract up 2.5c/bu to 586c/bu;
  • Soybeans January contract down 11.25c/bu to 1250.25c/bu
  • Winnipeg canola January 2022 contract down C$3.50/t to $1023.60/t;
  • MATIF rapeseed February 2022 contract up €16.25/t to €696.25/t;
  • Dow Jones industrial average was up 1pc;
  • US dollar index was unchanged at 96.3;
  • AUD firmer at US$0.712;
  • CAD firmer at $1.265;
  • EUR weaker at $1.127;
  • ASX wheat January 2022 down A$5/t to $410/t;
  • ASX wheat January 2023 down $7/t to $386/t.

International

Chicago wheat increased 2.25c/bu, minni added 8.75c/bu while Kansas March contract put on 5c/bu. Matif was unchanged while the black sea wheat fell USD$1.25/mt. Corn March contract put on 2.5c/bu, soybeans January contract fell 11.25c/bu, meal fell USD$1.5/st and oil came 0.75usc/lb. Matif canola added €16.25/mt while Winnipeg eased CAD$3.50/mt. Palm had a big day – increasing 3.63%. The Aussie firmed over 0.7100, the Dow was up 492 points (up over 5% since the start of the month) and crude rallied USD$2.16/bbl

USDA will release its Dec WASDE on 9 December.

Wheat demand just keeps coming. Japan is seeking 260,000t milling wheat, Philippines 300,000t feed wheat and 125,000t barley.

One hundred and seventy five thousand Russian troops have set up camp on the Ukrainian border. In a video conference Biden told Putin to stop it, Putin went on with his day. Biden committed to sending military resources to Ukraine if and when Russia oversteps the line, Putin went on with his day. The most significant impact could be global pressure in Germany to shut the Nord Stream 2 natgas pipeline – this would be explosive to the European gas market and ultimately to urea values.

S&P Global Ratings said on Tuesday that a default by China property giant Evergrande was inevitable. This would be China’s largest debt restructure and it would seem the chance of a government bailout is close to zero.

The US EPA announced, finally, a mixed bag of intentions in respect of biofuel mandates. It indicated retroactive reduction of 2020 targets, and 2021/2022 targets which would put the biofuel quota in 2022 at its highest ever level. The current year target would be 18.52 b gallons, with 13.32b gal from ethanol. The 2022 target would be 20.77 b gal, with 15 b gal from ethanol.

The US government has committed to throw some cash at the biofuel companies to offset COVID impact along with the retrospective changes.

“Big Oil” would be a little put out by the higher 2022 target.

Australia

Wheat markets were firmer on the cashboards yesterday by $3-4/t while ASW1 bids gained a little more ground, east coast prices posting up $6/t. Wheat harvesting in southern NSW to date so far has been making SFW1 spec with test weight holding up, and good protein. As expected falling number is the issue, with the lowest of the range reported to be 60-80 seconds. Yields continue well above average according to feedback from growers.

Barley markets yet again took another hit and pushed lower with cash bids off $5-8/t and deferred January plus delivered markets were also a touch softer on the bid side but bid offer spreads remained wide.

Pulse prices gained significantly. Lentils in South Australia were actively bids around $1050/t port attracting large grower selling.

We have also seen the faba bean market rally in recent weeks with bids into packers and export pathway gaining more momentum, which at $550-600 delivered packer, now sees fabas being priced out of the domestic ration.

Scattered showers pushed across parts of SA and Victoria yesterday creating some headaches for growers and slow start getting onto paddocks. Cooler conditions again today calls for a later start on cereals.

Strong harvest receival data was reported yesterday through South Australia Viterra network with a total of 2.624Mt of grain taken into their system this harvest.

 

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