Wheat values strengthened a little after experiencing downwards moves most days last week.
- Chicago wheat March contract up US8.5 cents per bushel to 785.25c/bu;
- Kansas wheat March contract up 9c/bu to 805.5c/bu;
- Minneapolis wheat March down 0.5c/bu to 1021.75c/bu;
- MATIF wheat March contract up €1/t to €283.50;
- Black Sea wheat added $1.50/t.
- Corn March contract down 1.75c/bu to 590c/bu;
- Soybeans January contract up 3.25c/bu to 1267.75c/bu
- Winnipeg canola January 2022 contract down C$2.40/t to $1005.60/t;
- MATIF rapeseed February 2022 contract up €9/t to €718.25/t;
- ASX wheat January 2022 down A$10/t to $398/t;
- ASX wheat January 2023 down $6/t to $377.50/t.
The Buenos Aires Grain Exchange increased their 2021/22 Argentine wheat crop estimate by 0.7Mt to 21Mt compared with the USDA 20Mt estimate published last week.
Ukraine corn crop is set to be 40mmt with a higher bias.
US inflation hit an almost four-decade high in November. Labor Department figures showed that the consumer-price index, which measures what people pay for goods and services, rose 6.8pc in November from a year ago. Price pressures have been driven by strong demand and supply-chain woes related to the pandemic, as well as higher energy prices.
Crop conditions stretching from northern Argentina to southern Brazil are on a watch with hot dry weather persisting.
Chinese leaders on Friday promised tax cuts and support for entrepreneurs to shore up slumping economic growth after a campaign to rein in surging bankruptcies, caused by corporate debt, and defaults among real estate developers. A statement issued after an annual planning meeting led by President Xi Jinping called for “maintaining stability,” reflecting anxiety about rising risks after economic growth sagged to an unexpectedly low 4.9pc compared with a year earlier in the quarter ending September. “Our country’s economic development is facing the triple pressure of demand shrinking, supply shocks and weakening expectations,” the statement said
Oil is on track for its biggest gains since late August – with Brent and WTI up around 7pc.
Cash markets finished the week out softer with bids down $5-10/t on both wheat and barley late Friday afternoon.
With more harvest activity ramping up and yields still coming in above expectations growers are happy to continue to participate in the market.
Canola was down $15-20/t on the cash boards, the canola harvest through NSW is coming to the tail end now.
A fine week ahead for harvest as most growers still a good week or two behind their normal program given the delays.
The weather forecast for the next 8 days looks relative clear for WA, SA, Vic and some scattered showers along the coast for NSW but should all be smooth sailing for growers to get a good run into Christmas now.
Source: Lachstock Consulting