Markets

Daily Market Wire 1 September 2021

Lachstock Consulting, September 1, 2021

North American futures settled between 1pc and 2pc lower, weather markets trimming prices on hurricane-related logistics worries in the US Gulf.

  • Chicago wheat December contract down US1.25c/bu to 722.25c/bu;
  • Kansas wheat December contract down 0.5c/bu to 712;
  • Minneapolis wheat December contract down 6.25c/bu to 903.5c;
  • MATIF wheat December contract down €1.50/t to €245.25/t;
  • Corn December contract was down 8.5c/bu to 534.25c;
  • Soybeans November contract down 10.75c/bu to 1292.5c;
  • Winnipeg canola November contract was down C$6.30 to $895.30;
  • MATIF rapeseed November contract down €6.75/t to €567.25/t;
  • US dollar index down 0.1 to 92.6;
  • AUD firmer at US$0.732;
  • CAD weaker at $1.262;
  • EUR unchanged at $1.181;
  • ASX wheat September contract down A$5/t to $355/t;
  • ASX wheat January 2022 down $4/t to $346/t.

International

Weaker markets yet again to end the month out with markets trading off hard early in the day before picking up slightly to partially recover losses later in the session – Chicago closing down a penny and a quarter, KC -1/2¢, Minny -6 1/4¢, and Matif -1.5€ on the earlier close.  Corn closed down 8.5¢ and beans -10 3/4¢ (Matif -6.75€, Winnipeg -$6.3).  Crude oil was back about half a buck to $68.5 WTI / $73 Brent and the DOW lost 39 points.  The AUD has firmed to 73.2¢, the CAD $1.262, and the EUR $1.181 with the dxy hitting 92.6.

More information is trickling in about the hurricane damage to loading terminals in the US Gulf. The CHS terminal is not expected to be back up until at least mid-September, and potentially only early October.  Other terminals are expected to be similarly affected.

Cash basis on barges continues to collapse with the impacts to demand.

First deliveries on September futures contracts saw 1k of Chicago wheat – making headlines with questions about what the quality on that may be.  No corn deliveries were reported, and no beans, although there were 283 lots of Minneapolis wheat delivered.

Algeria’s OAIC tender reportedly traded around US$355/t said to be in the order of ~300,000t.

Iran also reported to have booked four boats of Russian wheat.

Argentina’s government has extended a short-term restriction on beef exports until the end of October as part of their ongoing attempts to control domestic food prices and maintain popularity ahead of their next election.

Black Sea cash markets remain firm despite the board drops. Farmer selling is picking up at the higher prices amid active buying interest and the compounded tax lag impact in Russia.

The WTO will examine the dispute between China and the US over China’s grain import restrictions.

Australia

Local wheat markets were up another couple of bucks yesterday, albeit in quiet trade and with little origination business happening. Most growers appear happy to wait before making further sales.

Weather remains in focus amid warmer temperatures and more chance of rain.

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