Wheat and corn close higher while soybeans, canola lose ground.
- CBOT wheat up 2.25c per bushel to 522.25c,
- Kansas wheat up 2c to 494c,
- Corn up 0.5c to 378.75c,
- Soybeans down 1c to 916.5c,
- Winnipeg canola down C$0.39 to $480.80,
- MATIF canola down €2 per tonne to €368,
- Dow Jones up 117.51 to 25543.27,
- Crude oil up US$0.851c to $53.95,
- AUD down to 0.7088c,
- CAD down to $1.32527c (AUDCAD 0.93939),
- EUR up to $1.12617c (AUDEUR 0.6293).
Wheat gained 2.25c in overnight trading, with continuing discussions suggesting positivity in regards to ongoing trade discussions between China and the US. Talk continues to circulate around US wheat pricing into Indonesia and Southeast Asia, along with every other destination in the world. Overnight Tunisia bought 100,000t of French wheat at $254.50/t.
The corn market firmed in overnight trading to bring values back into standard territory at just below 380c. Data provider JCI has suggested China will import 14.5 million tonnes (Mt) of corn versus USDA expectations of 5Mt. Ethanol found another gear, with production at 1.03Mt versus expectations of 967,000t, and stocks at 23.5Mt.
The bean market was little changed overnight, and seems to be hoping for China to buy at greater levels than expected. According to JCI figures, this may eventuate, with their 101Mt figure well above the 88Mt figure expected by the USDA.
We continue to see flat to soft markets on the east coast, with end users seeming comfortable with their current stock levels. The barley market remains flat in the hope that a tender from Saudi Arabia is just around the corner. The Western Australian canola market has found a heartbeat, but tonnage is yet to make its way east as many producers are waiting to execute more sales. The eight-day forecast has very little rainfall on the horizon, with the northern tip of Queensland the only region expected to get more than 25 millimetres.
Source: Lachstock Consulting