Daily Market Wire 10 April 2019

Lachstock Consulting April 10, 2019

Grain markets mixed overnight; Tuesday’s settlements as follows.

  • Chicago wheat down 5.75 cents per bushel to 459.5c;
  • Kansas wheat down 4c to 427.5c;
  • MATIF wheat down €0.25 per tonne to €189.25;
  • Minneapolis wheat down 1c to 523c;
  • Corn unchanged at 360c;
  • Soybeans unchanged at 898.75c;
  • Winnipeg canola up C$0.80/t to $455.30,
  • MATIF rapeseed down €1.75 to €359
  • WTI crude oil down US$0.42 per barrel to $63.98;
  • Dow Jones down 190.44 points to 26,150.58;
  • AUD unchanged at 0.7120c,
  • EUR unchanged at $1.126;
  • CAD down to $1.332.

Market news

Wheat markets gave up a few cents today, with Chicago closing -6 1/4¢ to 459 1/2, KC -5¢ to 427 1/2, Minny -1 to 523, and Matif off 0.25€ to 189.25 on the earlier close. (Though some will likely attribute this to today’s WASDE, Lachstock does make note that the day session in the US actually traded up very slightly post report – the sell off was in the overnight/yesterday Australia time.) Corn and beans both closed unchanged after some volatility immediately post report, at 360¢ and 898 3/4¢ respectively. Matif rapeseed gave up €1.75/t to €359/t, and Winnipeg up C80¢ to C$455.3. Meanwhile, crude oil pulled back slightly from recent highs, off 42¢ WTI to $64/barrel and Brent $70.6. The DOW gave up 197 points as of writing amid talk of new tariffs on the EU by US President Trump and the IMF cutting their global growth outlook. The AUD continues to trade slightly firmer to 71.2¢, CAD $1.332, and EUR $1.126. EU and UK politicians met today as part of the negotiations over the Brexit – comments after the meeting suggesting that a delay up to 1 year was a possibility but no word yet as to how the EU will vote tomorrow.

WASDE neutral

Today’s WASDE report from the USDA came through with little fanfare. Bean carry out was nominally tighter than expected at 895 mbu, with the USDA leaving the big question (exports) unchanged and making only minor tweaks to seed and imports. Meanwhile corn was looser than surveyed ideas at 2.035 bbu, with the USDA cutting exports (-75 mbu) and feed (-75 mbu, reflecting stocks). US wheat stocks were up just under 1 mmt (32 mbu) on the back of lower exports (-20 mbu) and F&R (-10 mbu,reflecting the other week’s stocks report).

Alleged ergot in wheat cargo causes rejection

In news that could almost have been lifted word for word from a few years back – Egypt’s GASC has rejected a French wheat cargo on the basis of ergot problems. This time at least it appears to be consistent with tender terms, and not a unilateral imposition by Egypt’s quarantine authority. Algeria is back for yet another wheat tender – this time for June shipment and should still work back to French sellers (though HRW is not an impossibility if discounted slightly vs paper and cheap freight).

US unseasonal weather continues

The US blizzard is continuing to grab headlines – cold temperatures, freezing rain, and heavy snows expected across the western corn belt from Kansas/Colorado up to Minnesota. Saturated fields had been gradually starting to dry out, but will now need to deal with the additional moisture. Lachstock wishes best of luck to those with cattle living in the path of the storm.


Source: Lachstock Consulting


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