Red across the board with wheat, corn, canola and soybeans all losing ground.
- CBOT wheat down 6.25c to 499.75c,
- Kansas wheat down 6.25c to 502c,
- Corn down 3.25c to 384.75c,
- Soybeans down 6.5c to 999.5c,
- Winnipeg canola down $C1.70 to $C508.6,
- Matif canola down €3.25 to €371.75,
- Dow Jones up 60.80 to 21891.12 ,
- Crude Oil unchanged at $50.17,
- AUD down to 0.7997c,
- CAD up to 1.2492c, (AUDCAD 0.9990),
- EUR down to 1.1831c (AUDEUR 0.6758).
Chicago and Kansas wheat were in tune overnight, sharing losses slightly north of 6c. Markets were on track to remain relatively unchanged, but stumbled at the line as the session came to an end. Canada remains a key focus as their crop becomes more questionable by the day. Spring wheat conditions were down 2 per cent.
Corn conditions declined 1pc against market expectations of unchanged as dryness concerns continue to reign. Over the second half of this week, a system is expected to bring significant rainfall to the Plains and Minnesota, but the rest of the corn belt will remain dry. Temperatures aren’t expected to hit lofty highs; this will limit the potential impact of the dry conditions.
The bean market encountered heavy volume early before fighting its way back to finish with slight losses. Conditions improved 2pc with Illinois at +7 and Indiana at +4. Some of the dryer regions that missed last week’s rainfall came off second best, with North Dakota at -7 and Kansas at -4. Relief isn’t on the horizon for the western states for at least another week until rainfall appears in the 11-14 day forecast.
The Canadian canola crop condition continues to decline as the dry weather refuses to let up. The drought has hit the Prairies the hardest, and many believe it is too late to be able to see any yield improvement going forward. Concerns are growing as the drought seems to be making its way further north.
South Australia and New South Wales are looking forward to some relief with a healthy 8-day forecast on its way. Thirsty areas of South Australia, including the Eyre Peninsula, can expect 25-50mm over the next four days. The wheat belt in NSW is set to receive up to 25mm over the next week. Western Australia is only expected to get a maximum of 10mm across its cropping regions. Queensland is looking at a dry week, with no more than 5mm expected in the south-west and on the Darling Downs.
Source: Lachstock Consulting