Markets

Daily Market Wire 10 September 2020

Lachstock Consulting, September 10, 2020

Grains were mixed, canola was lower.

  • Chicago wheat December contract down US0.5 cents per bushel to 543.75c;
  • Kansas wheat December contract up 1.5c/bu to  471c;
  • Minneapolis wheat December contract down 0.75c/bu to 535.50;
  • MATIF wheat December contract unchanged at €188.75;
  • Corn December contract down 1.5c/bu to 360.25c;
  • Soybeans November contract up 5.75c/bu to 978.75c;
  • Winnipeg canola November down C$5.50 to C$505.40;
  • MATIF rapeseed November contract down €2/t to €381.75;
  • Brent crude November contract up US$1.01 per barrel to $40.7939.78;
  • Dow Jones index points up 440 points to 27940;
  • AUD weaker at $0.721;
  • CAD weaker at $1.323;
  • EUR weaker at $1.178.

Markets

  • The Russian market firmed overnight – seemingly at odds with increases in production as harvest draws near a close. With reports suggesting 83pc of the crop is harvested with 79 million tonnes (Mt) received. USDA currently at 78Mt so we expect they will adjust this number higher
  • An interesting line in the wires overnight indicating that a Philippines ag lobby group is trying to limit wheat imports to support its local corn market. This is meaningful for Australia, with a large program already booked.
  • US corn and soybean export pace to China will be feature of pre-report expectations. Corn is certainly keeping the bid under the wheat market and the trade will be looking for some support/confirmation from the USDA
  • Bulls need feeding and the USDA report is the chuck wagon – it will set the tone and it’s hard to see an unchanged result – there is some tension ahead of this one.

Australia

  • New crop markets gained ground late yesterday with bids pushing firmer by another $2-3/t on wheat and barley
  • We saw old crop markets also follow the upward trend and firm with barley in Victoria trading around $220/t track equivalent
  • AUD/USD pushes back up towards .73 range with it currently at .7280 this morning
  • LSC NSW team hit Moree yesterday afternoon, crop potential is certainly there but growers would love another rain and continual kind finish
  • The Wimmera and Western Vic looking to lead the charge with a 15-20mm event on its way
  • SA also set to receive a wide spread 5-15mm event across the cropping regions in the next 8 day according to the BOM
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