Markets

Daily Market Wire 11 December 2018

Lachstock Consulting, December 11, 2018

Lower for grains and mixed for oilseeds.

  • CBOT wheat was down 6c to 525.25c,
  • Kansas wheat was down 1.75c to 510.25c
  • Spring wheat down 6.25c to 575.25c
  • CBOT corn was down 1.5c to 384c
  • Matif corn was down 0.25 to  €173.75,
  • Soybeans were down 7c to 909.75c,
  • Winnipeg canola up C$2.10 to $487.60,
  • Matif canola was down €1.75 to €370.50,
  • Dow Jones was up 34.30 to 24423.26
  • Crude oil was down 2pc to $50.99 per barrel
  • AUD 0.7195
  • CAD  0.746
  • EUR 1.135

Wheat

Wheat markets were softer with SRW taking most of the damage as HRW export potential increases. The US dollar was up 0.5% which didn’t help export demand and after Fridays finish the trade was comfortable retreating ahead of the WASDE report which will update tonight. Flags for this report will be where the USDA take their Argy and Aus figures. Implied vol in March SRW finished at 20.75%. Matif Wheat was up 0.25€ to 204€, Black Sea Wheat was down -0.5$ to 247.5$ and the Ruble was unchanged at 0.0149. The wheat COT had funds +13.4k to -56.6k contracts of SRW and +5.3k contracts to -10.8k contracts of HRW.

Corn

Corn finished fractions lower, trading a 2.5 cent range. The COT had funds buying 75.8k to finish at +52.7k contracts. Corn continues to await demand with the big question market coming from China. South American volumes are increasing, so price remains stagnant for now.

Soybeans

Beans retreated as the ideas of a China purchase seem inadequate to solve the US balance sheet which has swollen over the last 6 months of lower demand. Soybean Meal was down US$-0.80 per tonne and Soy oil was up 0.02 points. The Commitment of Traders Report (COT) was delayed from Friday and showed beans covering 46.2k contracts, taking their net position to -17.8k.

Australia

Aussie markets were softer yesterday from a basis point of view, with the market focusing on harvest pace in WA and a rain forecast on the East Coast. ASX traded higher in thin volume but didn’t sustain itself when CBOT sold off in the day session. Sorghum potential is improving with the rainfall, but the market is discounting areas where moisture deficits are restricting acres. The price is responding but the production may not follow. The East Coast market is banking a lot on this sorghum crop, so any production declines will be met with swift price action.

Source: Lachstock Consulting

 

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