Markets

Daily market wire 1 June 2017

Lachstock Consulting, June 1, 2017

Overnight markets:

Mixed for grains and oilseeds.

CBOT Wheat down -0.25c to 443.75c

Kansas wheat down -1.25c to 450c

Corn up 5c to 380c

Soybean up 2.25c to 918.25c

Winnipeg Canola down -0.89$C to 482.1$C

Matif canola down -2.5€ to 352.75€

Dow Jones down -20.81 to 21008.65

Crude Oil down -1.029c to 48.63c

AUD down to 0.743c

CAD up to 1.349c (AUDCAD 1.002)

EUR up to 1.124c (AUDEUR 0.660)

Soybeans

Soybeans managed to stem the losses from the last two sessions, trading both sides, before finishing slightly higher. China returned from their public holiday which added some liquidity, though it did not shed any light on the rumours of recent cargo washouts. Weekly crop report for beans did not have any surprises, falling in line with market expectations.

Canola

Canola lower again, with the front end leading the charge as the inverse continues to slip. Concerns remain for planting delays and yields associated with a later plant in Canada, however the weather looks to be providing some openings, which could enable rapid seeding.

Corn

Corn stronger as crop progress and quality reports encouraged short covering. The US crop condition came in at 65% good to excellent vs. market expectations of 68% and a 5 year average of 71%. The fact remains that there is still plenty of old crop supply in the US, plus the unsold South American corn ready to hit any rally, so its difficult to get too excited about an early condition report. Particularly when you factor in historic condition report figures and their correlation with final yields.

Wheat

Winter wheat slightly lower in a pretty quiet session, while spring wheat is pushing 5-month highs. Egypt tendered for wheat with winning offers coming from Russia and Romania at values approximately $16 over US replacement. Winter wheat ratings were lower by 2% at 50%, good to excellent, which caught the market slightly off guard. Global production sees dryness concerns building in the Ukraine where the forecast remains hot and dry, while Cocereal revised their European wheat estimate down 2.8 mmt to 142mmt.

Australia

The first 8 days of June brings no moisture in the Australian forecast, as discussed in previous wires, we are now at a point where this will impact our balance sheets. We are still quantifying this, but will cover off in our next SnD update. Nothing new in Aussie cash markets, we are running out of barley and wheat demand is fickle.

 

Source: Lachstock Consulting

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