Overnight futures markets
Wheat lower, corn and oilseeds firmer
- CBOT wheat down -4.25c to 486.5c,
- Kansas wheat down -2c to 520.25c,
- Corn up 1c to 391.75c,
- Soybean up 7.75c to 1048.75c,
- Winnipeg canola up $C8.5 to $C515.5, and
- Matif canola up €2 to €346.75.
- The Dow Jones down -171.58 to 25007.03 ,
- Crude Oil down -0.5099c to 60.85c,
- AUD down to 0.78569c,
- CAD up to 1.29572c, (AUDCAD 1.01805) and the was
- EUR up to 1.23901c (AUDEUR 0.634).
The losses in wheat futures markets in Chicago and Kansas come off the back of specks of rain on the horizon late next week.
With the forecast acting as the main driver in this current market it will continue to ebb and flow until a meaningful rain event, or a continuing dry spell provides significant direction.
As a result of the current dryness in the US coupled with the extended timeframe until the potential for rain to arrive, funds are relatively comfortable in holding their long position until we see more than a drizzle on the radar.
Corn strengthened US1c/bu overnight as the continuing concerns and uncertainty in Argentina and Brazil remain a talking point.
USDA announced 210k optional origin corn to South Korea.
Canola markets rallied. Winnipeg climbed Can$8.50/t on the back of a weakening Canadian dollar, along with the strengthening soybean market.
Aside from this there doesn’t seem to be a great deal of fundamental reasoning behind the overnight shift.
The bean market is still attempting to make up for Friday’s losses with a rally of 7.75c/bu.
There are still some question marks surrounding production in Argy and Brazil but there are suggestions that it isn’t going to be as hefty as initially expected.
Although there is talk of rain over the next couple of weeks there is nothing to suggest that they will provide enough to make any significant inroads.
Domestically conditions remain dry with no more than 10mm expected to fall in any Aussie cropping regions over the next eight days.
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