Higher for grains and lower for oilseeds.
- CBOT wheat up 4c to 526c,
- Kansas wheat up 1.75c to 542.50c,
- Corn up 0.5c to 394c,
- Soybeans down 4.5c to 1018.50c,
- Winnipeg canola down C$1.60 to $534.10,
- Matif canola down €3 to €357.75,
- Dow Jones down 251.94 to 244415.84,
- Crude oil down US$1.12 to $67.19,
- AUD steady at 0.757c,
- CAD to 1.2947c (AUDCAD 0.98),
- EUR up to 1.1701c (AUDEUR 0.6469).
Wheat showed good strength overnight on the back of the recent sell-off. Farmer selling has died, and with more people focusing on the dry weather in the Australian state of New South Wales, the global market is now pegging a production of 20-22 million tonnes (Mt), versus the USDA estimate of 24Mt, and Lachstock’s current range of 22-22.5Mt.
Corn closed firmer on warmer and drier weather for the corn belt, and short-covering after the recent price wash-out. Consumers are taking some good coverage as well, given the well-published tightness that may play out in corn’s supply and demand amid any summer weather problems across the corn belt.
Beans were weaker due to ongoing trade tensions caused by the United States’ announcement on tariffs on steel from Canada, China and Mexico. Weather has improved a fraction, and Brazilian logistics are showing signs of improvement.
Canola was under pressure on the back of rain across the prairies, and weakness form the vegetable and crude oil markets.
Aussie markets again remained firm, despite the stronger AUD. Forecasts for NSW remain hit and miss, and the likelihood rain pushing north and west seems slim. Damage to yield prospects brought about by the lack of rain is continuing in NSW, but crops in southern areas of Australia are hanging on, despite the dry conditions, and as yet pose no need for dramatic concern.
Source: Lachstock Consulting