Markets settled lower.
- Chicago wheat May contract down US7.25¢/bu to 505.5¢;
- Kansas wheat May contract down 2.75c to 432.75¢;
- Minneapolis wheat May contract down 3¢ to 509¢;
- MATIF wheat May contract up €0.5/t to €177.75/t; edit
- Corn May contract down 8.75¢/bu to 365.75¢;
- Soybeans May contract down 13.75¢/bu to 859.5¢;
- Winnipeg canola May contract down C$9.10/t to $451/t;
- MATIF rapeseed May contract down €11/t to €356.75/t;
- Brent crude May contract down US$2.57 per barrel to $33.22
- Dow Jones index down 2353 points to 21201;
- AUD weaker at $0.6274;
- CAD weaker at $1.394;
- EUR weaker at $1.1159.
Where do you start. The AUD is the latest to fall on its sword as the rot continues. US equities hit the circuit breaker again as the market opened 8 per cent lower. Global airlines are in free fall with the likes of Qantas worth under half of what it was before this started. My quote board has about 3 lines with green in them – the VIX (a measure of volatility), Inovio Pharma – sells a bunch of masks and medical supplies and a small energy company which is dead cat bouncing.
For the majority of you reading this, we are in the business of feeding people. Taking product from the areas of surplus to the areas of deficit. This event is largely unprecedented so we have to find meaningful and definable data points in an effort to navigate through the noise.
As Beef Central pointed out yesterday there are some green shoots post the carnage over the last month. China beef demand was one of the first Ag markets to be hit as their domestic supply chain failed. This is beginning to correct with port stocks being cleared and fresh demand reaching out to Australian suppliers.
The aggressive nature to which China dealt with the outbreak has seemingly worked to some extent and, in a bazaar turn of events it maybe China that acts as a buffer for the Australian beef producer.
This coincides with reports that China entered the barley market in WA, purchasing a few vessels of old crop for their feed market. From an Australian grower perspective the move in the AUD has softened the blow of a weaker global market. However, as the China barley purchase has shown, relative value still has a place in this market.
Local Aussie markets continued to firm yesterday through current crop values with barley in WA up another $5/t and the rest of the boards across the country following suit, bid and offers throughout the market have narrowed in.
Following yesterday’s wire and more activity in the barley, reports circulating in the market that China has stepped in and purchased Aussie barley. New crop values roughly unchanged and a softer AUD as we kick off the last day of the week.
Rain forecast maps continue to look positive for WA leading into the weekend and a dry 5-8 days in QLD and Northern New South Wales.