Markets

Daily Market Wire 11 October 2022

Lachstock Consulting, October 11, 2022

US wheat markets rallied 5pc.

  • Chicago wheat December contract up US57.75 cents per bushel to 938c/bu;
  • Kansas wheat December contract up 55.5c at 1024.25c/bu;
  • Minneapolis wheat December contract up 46.25c/bu to 1014.25c/bu;
  • MATIF wheat December contract up €16.25/t to €364.25/t;
  • Black Sea wheat December contract up $8/t to $340/t;
  • Corn December contract up 15c/bu to 698.25/bu;
  • Soybeans November contract up 7c/bu to 1374c/bu;
  • Winnipeg canola Nov 2022 contract closed overnight, previous close was  C$868.60/t;
  • MATIF rapeseed November 2022 contract up €13/t to €642.50/t;
  • ASX Jan 2023 wheat contract down A$3/t to $462/t;
  • ASX Jan 2023 barley contract up A$2.50/t to $332.50/t;
  • AUD dollar weaker at US$0.630.

International

Wheat futures surged on Monday in response to Russia’s barrage of missile attacks on Ukraine, which make the prospect of an export corridor renewal next month doubtful. Before this escalation UN Secretary-General Antonio Guterres and his team were working to expand and extend the agreement for a year. “We’re trying to remove the uncertainty to ensure that people are publicly saying that ‘yes, this will be extended a further year,’ but we’re not there yet,” adding that UN officials are also working to facilitate Russian grain and fertiliser exports. Russia rained missiles on busy Ukrainian cities on Monday in what the US called “horrific strikes”, killing civilians and knocking out power and heat with its most widespread air attacks since the start of the war. Missiles hit intersections, parks and tourist sites in the capital Kyiv and explosions were reported in Lviv, Ternopil and Zhytomyr in western Ukraine, Dnipro and Kremenchuk in the centre, Zaporizhzhia in the south and Kharkiv in the east. Putin said he had ordered “massive” long range strikes after an attack on the bridge linking Russia to the annexed Crimean Peninsula over the weekend, and threatened more strikes in future if Ukraine hits Russian territory. “To leave such acts without a response is simply impossible,” he said, alleging other, unspecified attacks on Russian energy infrastructure. Despite Russia saying the attacks were in response to the bridge explosion, Ukrainian authorities said the missile attack had been ordered before this strike occurred. The UN General Assembly voted on Monday to reject Russia’s call to hold a secret ballot later this week on whether to condemn Moscow’s move to annex four partially occupied regions in Ukraine. The General Assembly decided, with 107 votes in favour, that it would hold a public vote (not a secret ballot) on a draft resolution that would condemn Russia’s “illegal so-called referenda” and the “attempted illegal annexation”. 

Australia

After a sluggish start to the week the local markets close yesterday remained wide bid offer spread amid still plenty of uncertainty. Offshore markets started to rally late in the day, and the dollar softened, but neither bid nor offer side was willing to meet. Today will be interesting to see what moves are passed through into the market and if we see more liquidity pick up. 

WaterNSW reported Burrendong Dam was 139.3 per cent capacity and rising. Releases from Burrendong Dam were around 30,000ML/day, as at 5am Sunday.The BOM has released its long-range forecast for Australia’s upcoming severe weather season outlook warning October to April increased risk of widespread flooding for eastern and northern Australia and an increased risk of an above-average number of tropical cyclones and tropical lows.

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