Markets

Daily market wire 10 Oct 2016

Lachstock Consulting, October 10, 2016

lackstock1After what can only be described as an overly volatile week we have finally witnessed some degree of sanity with a more settled market today. We are collectively lower across the board with minimal losses in both wheat and corn.

With the upcoming USDA report on Wednesday it will be interesting to see what market moves occur after the significant fluctuations we have already seen.

The wheat market currently waits in anticipation that Black Sea prices will continue to climb. If this is the case then we may see improvements in US competitiveness.

CBOT Wheat was down -1c to 394.75c, Kansas wheat down -2c to 403c, corn down -0.75c to 349.5c, soybeans down -1.75c to 963c, Winnipeg canola up $C1.8 to $C469.8, and Matif canola up €0.25 to €377.5. The Dow Jones down -28.0 to 18240.49 , Crude Oil down -0.17c to 49.64c, AUD up to 0.7601c, CAD down to 1.3250c, (AUDCAD 1.0074) and the was EUR down to 1.1193c (AUDEUR 0.679).

Corn lost ground as the market remains congested between farmer selling and fund short covering. We can still expect a record corn crop, even if the USDA report decided to reduce yields in its upcoming report.

Soybeans finished in the red after trading within a 20c range. The expectation is that we will see some healthy Chinese pricing early next week as they are set to return from their holiday period.

In regards to Winnipeg canola, the magic $475 resistance level in the November contract is within reach after gradual improvement over the last few sessions.

As a result of the recent rainfall and instances of snow in Canada it has been suggested that some canola crops will be left behind.

Canola acres in France are also expected to decrease with a predicted reduction of 8%.

In Australia the rain has stayed away, for the most part, with well deserved relief in many cropping areas. The next week is set to provide much of the same weather scattered showers across Victoria while South East NSW is predicted to get less than 20mm. The longer days and high winds will prove helpful in terms of countering unwanted rainfall in some areas.

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