Markets

Daily Market Wire 12 December 2019

Guest Author, December 12, 2019

Offshore futures settled generally lower on Wednesday night.

  • Chicago wheat March contract down 4.5 cents per bushel to 519.25c;
  • Kansas wheat March contract down 0.5c/bu to 430.75c;
  • Minneapolis wheat March contract up 0.25c/bu to 518.25c;
  • MATIF wheat March contract down €1 to €182/t;
  • Corn March contract down 5.75c to 371.25c;
  • Soybeans January contract down 7.75c/bu to 893.5c;
  • Winnipeg canola January contract down C$5.30/t to $453.50/t;
  • MATIF rapeseed February contract down €1.25/t to €396.50/t;
  • Brent crude February contract down US$0.62 to $63.72 per barrel;
  • Dow Jones index up 29.58 points to 27911.30 points;
  • AUD stronger at $0.6869;
  • CAD stronger at $1.3174;
  • EUR stronger at $1.1134.

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Weaker across the boards after some more deliveries on Dec corn- Chicago gave up four and a half cents to 519 1/4¢, KC off half a cent to 430 3/4¢, Minny up 1/4¢ to 518.25¢, and Matif was off another euro to 182€ on the earlier close. Corn closed down six cents to 371.25¢, and beans were off 7 3/4¢ to 893.5¢ (Matif down a euro twenty five to 396.5€, Winnipeg canola of $5.3. to $453.5). Crude oil gave up half a buck to $58.8 WTI, $63.7 Brent and the DOW picked up 30 points. The AUD is trading at 68.8¢, the CAD at $1.317, and the EUR at $1.114.

Interesting comment on the macro front – after the “good news” yesterday that the USMCA was going to pass the US House of Representatives, the Senate has reportedly pushed the bill there into 2020.

Mostly quiet on the news front, though export sales flashes out of the US covered 585,000t of beans to China for 2019/20.

This confirmed the rumours of earlier business happening this week.

There were also two boats to unknown destinations, which may well be China.

The problem for the bean market is when the next bit of demand may come as we’re looking down the barrel of the new season South American crops and better comments on conditions coming out of Brazil in particular.

Lachstock does note that the Brazilian currency, the Real, is back to 4.12, but still at historically weak levels for this point, supporting the export competitiveness there.

Argentine row crop planting is starting to push into the finishing stages, and there is a bit of rain on the forecasts there too, though more would be appreciated.

Australia

Aussie markets ran hard and fast yesterday on the cash boards and in the trade.

The slow Victorian harvest is really driving this market firmer because there are still shortfalls for December delivery.

ASX Jan wheat was up $6/t settling at $353.50/t; cash boards were firmer by $2-3/t and the price rise was even greater on lower grade wheat through Victoria.

Barley delivered markets continue to rally with no signs of relief from rain. Drought feeding remains at an all-time high.

The market is also waiting on results from the latest Philippines tender and what that means for Victorian feed market.

A week ago feed wheat was priced at export parity. We have now rallied a good $15/t since then and this now has it priced out of that market.

Harvesting conditions still remain fine for today and leading into the weekend as more of the wheat harvest through Wimmera should start to come off.

 

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