Markets

Daily Market Wire 10 September 2021

Lachstock Consulting, September 10, 2021

US Hard Red Winter wheat markets dropped another 3 per cent.

  • Chicago wheat December contract down US17.25c/bu to 692.25c/bu;
  • Kansas wheat December contract down 22c/bu to 682.75c/bu;
  • Minneapolis wheat December down 22c/bu to 872.5c/bu;
  • MATIF wheat December contract down €2.50/t to €239.50/t;
  • Corn December contract down 0.5c/bu to 510c/bu;
  • Soybeans November contract down 9c/bu to 1270.5c/bu;
  • Winnipeg canola November contract down C$28.80 to $852.70/t;
  • MATIF rapeseed November contract down €11.50/t to €570/t;
  • US dollar index down 0.2 to 92.5;
  • AUD unchanged at US$0.737;
  • CAD firmer at $1.266;
  • EUR firmer at $1.183;
  • ASX wheat September contract down A$1.50/t to $336.50/t;
  • ASX wheat January 2022 down $3/t to $335/t.

International

In the wheat pits Chicago settled down -17.25 usc/bu closing at 692.25usc/bu, Kansas was -22 usc/bu lower to settle at 682.75usc/bu, while Minni softened -22 usc/bu to go out at 872.5usc/bu. Corn fell -0.25 usc/bu to go out at 510usc/bu while Beans were down -9 usc/bu to settle at 1270.5usc/bu WCE Canola softened -28.8 CAD/mt closing at 852.7CAD/mt with Matif Canola finishing lower by -11.5 Eur/mt. In outside markets the Dow Jones fell -151.69 points, Crude was down -1.09 bbl.

In pre-WASDE-report trade the sellers held court. Wheat strolled downward through the US$7/bu mark, while corn seems overly reluctant to drop under $5/bu despite the weakness in the wheat pits. There are lots of reasons for wheat to go up but only one is needed for it to go down. Spec positioning is extreme in HRS and up there for SRW and HRW.

Argentine wheat conditions shot sharply higher with the Buenos Aires Grain Exchange pegging the good-to-excellent rating at 46pc, up from 31pc last week.

The Philippines bought wheat from India and Australia. The Indian purchase is an interesting one, the wires suggesting it is just a one off but it will be interesting if they are a feature in the market going forward. On paper Aussie will do the lion share of The Philippines’ going forward.

Wheat demand is solid as a rock and while futures are on the slide, global FOB values are dragging their heels. Saudi is in for milling wheat, Pakistan approved imports, Morocco needs US soft wheat, Tunisia and Jordan are also in. Solid Chinese producer inflation printed a 13-year high according to the statistics bureau.

The Biden administration is considering mandating vaccines for the majority of US federal workers.

Australia

Local new crop wheat and barley market bids continued to drift lower by $2-3/t yesterday. ASX wheat settling down $3/t to $335/t with approximately 10,000t trading over the day.

Port zone spreads for wheat and barley continue to widen with PKE zone trading $4-5/t under Geelong/Melbourne. While Port Adelaide zone is $3-4/t over the Eastern Port zones.

WA frost still the focus point in this market with everyone getting a handle on damage. GIWA was set to release its latest crop report today but have pushed it back till next week to give some more time to assess damage on the ground.

Harvest labour campaigns are ramping up with the big concerns of labour shortages around the country and a bumper crop on the way, fears remain that Aussie farmers and bulk handling sites are going to struggle to get the labour force in.

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