All grains and oilseeds markets settled lower overnight.
- Chicago wheat May contract down US10.75c/bu to 628c;
- Kansas wheat May contract down 7.5c/bu to 579c;
- Minneapolis wheat May contract down 11.25c/bu to 642.75c;
- MATIF wheat May contract down €1.50/t to €211.25/t ;
- Corn May contract down 8.25c/bu to 569c;
- Soybeans May contract down 21c/bu to 1382c;
- Winnipeg canola May contract down C$3.90/t to $807.10;
- MATIF rapeseed May contract down €8/t to €502.50/t;
- US dollar index down 0.1 to 92.1;
- AUD unchanged at US$0.762;
- CAD weaker at $1.256;
- EUR firmer at $1.191;
- ASX wheat May contract down $2/t to $282/t;
- ASX wheat January 2022 down $1/t to $291/t.
International
Grain markets traded lower on the overnights and continued to hold the weakness into the day session, although row crops are seeing more support out into new crop. Corn was off 8 1/4¢ (though Dec was only down two cents) and beans -21¢ (twelve new crop) with canola down $3.9 Winnipeg/-8€ Matif. Wheat saw Chicago down 10 3/4¢, KC -7.5¢, Minny -11 1/4¢, and Matif -1.5€ on the earlier close.
Macro markets have the DOW back 55 points (though the S&P did hit new highs mid-day) and crude up thirty odd cents to $59.7 WTI / $63.3 Brent. The USD index is holding mostly steady around 92.1, despite US fed figures out last night reported large increases in price indices for housing, rent, and fuel prices. Fed officials have been downplaying the risk of inflation in their comments in recent weeks. The AUD is trading around 76.2¢, the CAD$1.256, and the EUR $1.191.
Adding to the concerns about inflation in the US, Treasury figures overnight had the budget deficit up to US$660 billion for March with the new stimulus measures blowing out spending to near-record levels.
For the first time in a while we saw some US export sales flash, 0.132Mt new crop beans sold to China and 0.11Mt old and new crop bean sold to Bangladesh.
Updated export inspections were all about as expected, 1.6Mt corn, 0.45Mt wheat, 0.3Mt beans and 0.199Mt sorghum/milo almost entirely Chinese business, with a few boxes to Japan.
Regular US weekly crop conditions had national winter wheat rated 53pc% good-to-excellent, unchanged from previous week, corn planting at 4pc, versus 3pc avg. and spring wheat planting at 11pc vs. 6pc avg. Next week’s report will be the first national estimate for the year on bean planting pace.
Planting delays on some spring crops are being reported in parts of the EU/Black Sea region after the recent cold snap, raising questions about acreage shifts as ideal planting windows start to slowly tick by.
Little has changed on the South American weather maps, with southern Brazil continuing to swing towards the drier side as safrinha crops push forward in growth.
Globally lots of weather maps are being scrutinised but otherwise it’s a fairly quiet start to the trading week.
Australia
Markets very quiet locally, with a little strength being reported in some positions but overall volume very light as we move into planting.
Logistics remaining in focus across the east coast with truck freight still tight and execution pushing ahead hard on the older sales business.
BOM maps still calling for a fairly dry week nationally and extended run maps are not much different into the end of the month.
Source: Lachstock Consulting
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