The oilseeds gained at least two percent. Wheat markets tended a little lower. The Australian dollar eased. The US dollar index eased. Crude oil eased.
- Chicago wheat December down US 3 cents per bushel to 663.5c/bu;
- Kansas wheat December down 5.25c/bu to 814.25c/bu;
- Minneapolis wheat December up 2.25c/bu to 856.75c/bu;
- MATIF wheat December down €1.75/t to €236.50/t;
- Black Sea wheat December down US$0.25/t to $241.75/t;
- Corn September up 5c/bu to 492.25c/bu;
- Soybeans November up 27.75c/bu to 1345.5c/bu;
- Winnipeg November canola contract was up C$22.70/t to$781.40/t;
- MATIF rapeseed November 2023 up €11/t to €459.25/t;
- ASX January 2024 wheat down A$1/t to $385/t;
- ASX January 2024 barley unchanged at A$320/t;
- AUD dollar eased 14 points to US$0.6676.
Markets were a mixed bag overnight.
The recent weather trend across the US Corn Belt is expected to continue this week, first half July has been cooler and above average precipitation across large parts of the central and southern Corn Belt. This was also reflected in the recent crop condition scores. As of Sunday 55pc of the US corn crop was rated good to excellent, up 4pc on the week. As we look ahead the market will closely monitor weather as July is the critical pollination month and on Wednesday everyone is eager to see the corn yields in the USDA Supply and Demand report with the market expecting a 176/77bu/ac type yield, down from 181.5bu/ac.
The Winnipeg market reversed the losses of the previous session. Canola posted strong gains to be back trading at 4-month highs as weather raised its head again across Saskatchewan and Alberta.
HRW wheat areas reported ongoing wet weather across Kansas and Oklahoma which continued to delay harvest progress and raised more concerns over quality and abandonment. After the close, the crop report came in at 46pc of the US winter wheat crop harvested compared to 59pc on average and 40pc of the crop was rated good to excellent, unchanged from last week. Spring wheat will be the next one to watch. The latest report showed only 47pc of spring wheat rated good to excellent, a loss of 1pc from last week.
China’s producer price index (PPI) fell for a 9th consecutive month, dropping 5.4pc annually in June which was the steepest decline since December 2015. The consumer price index (CPI) was unchanged year on year and food prices rose for the first time in 3 months on the back of increases in fresh vegetables and eggs, despite significant falls in pork price.
China’s MOFCOM statement threatened a market reaction but realistically had no meat on the bone just yet but certainly indicated the process is moving forward.
Barley values were slightly firmer by end of the day in WA and close to unchanged in the east. ASX barley January was unchanged on what was relatively benign in terms of activity.
Urea shortages still are an issue for those that have not secured it and threaten to cap yield potential.