Overview of futures markets:
Lower for grains and oilseeds.
- CBOT Wheat was down -10.5c to 412.25c,
- Kansas wheat down -12.75c to 432.5c,
- corn down -3.5c to 354.5c,
- soybeans unchanged 996.25c,
- Winnipeg canola down -5$C to 520.9$C,
- Matif canola down -4.5€ to 407.75€.
- The Dow Jones down -21.5 to 20881.48 ,
- Crude Oil down -0.02c to 48.47c,
- AUD up to 0.7568c,
- CAD down to 1.344c, (AUDCAD 1.017)
- EUR down to 1.065c (AUDEUR 0.710).
Wheat suffered the most, breaking support, putting it in a technical position to revisit old lows. Forecast rain for HRW areas contributed to the sell off, as well as the reality of large global supplies in EU and Black Sea. EU wheat, thought to be in scarce supply, continues to get export business, increasing competition for the oversupplied global balance sheet. With all of that said and done, the market has a lot of production volatility to get through, as well as a considerable speculative short position, with futures trading only 30 cents above their lows. .
Soybeans were unchanged in a low volume, low range session. Market is still digesting big South American crops, logistical issues to get it to destination and the ongoing US business. Spread trading put pressure on soy oil and supported soybean meal. .
Canola followed lower palm and soy oil pricing to close lower. This selling pressure looks to have triggered some technical sell stops, which contributed to the fall. The Canadian dollar was slightly stronger.
Corn was well bid at the beginning of the session, but closed slightly lower. Weekly exports were above expectations, as more logistics space is freed up now by slower bean exports.
Northern NSW and Southern Queensland received some good rainfall, which will help boost the moisture profile for winter crop planting. More rain is forecast for the next eight days, but the northern domestic markets do not appear to have softened. Southern markets are well bid at present due to lack of active grower selling in major bulk handling company (BHC) rail depots. The trade needs grain for vessels, in sites that allows them to utilize their rail commitments, and some forecast that growers in major BHCs have sold 75pc of their grain, which is the catalyst for the flat price increase.
Source: Lachstock Consulting