Daily market wire 14 November 2017

Overnight futures markets:

Lower for grains and oilseeds.

CBOT wheat was down -7.25c to 424.25c,
Kansas wheat down -5.75c to 427.5c,
corn down -1.25c to 342.25c,
Soybean down -12.75c to 974.25c,
Winnipeg Canola market was closed
Matif canola was down -1.5€ to 379.25€.
The Dow Jones up 23.00 to 23445.91,
Crude Oil up 0.009c to 56.75c,
AUD down to 0.762c,
CAD up to 1.273c, (AUDCAD 0.970)
EUR up to 1.166c (AUDEUR 0.653).

Wheat

Wheat suffered heavy selling pressure, with spring wheat leading the charge, falling US14.2 cents/bushel in light volume. Implied volatility in December Soft Red Winter wheat went out at 16.3 per cent. Russian values are reportedly softening on account of weakness in the Ruble. Although nothing is trading, the offer side of the market is still holding firm. Morocco bought 30,000t of US wheat in their recent tender. Now we wait for the results of Jordan and Turkey’s open tenders. New crop US winter wheat is expected to be 95pc planted, with conditions improving slightly.

Soybeans

Soybeans suffered decent selling on the back of an improved moisture forecast in northern Brazil. The session was fairly convincing from a technical point of view, showing no respect for nearby support levels. Soymeal was down US$2.40/t, while soy oil was off 47 points. Weekly export sales were 16pc lower than last week at 2.087Mt, which puts year to date progress almost 30pc lower than last year.

Corn

Corn suffered further selling due to weakness in beans and wheat, as well as the improved Brazilian forecast. Today’s session only featured a 2.5-cent range. Implied volatility in December corn futures went out at 11.43pc. Harvest pace has corn at 83pc, suggesting reasonable volumes still to come. The yield increases from the USDA last week are combining with improved South American prospects to contract any potential for volatility.

Australia

The Aussie forecast has 25-50 mm forecast for a reasonable part of NSW and Victoria, which will delay harvest and may lead to some quality downgrades. This will slow grower selling, as producers will not be comfortable committing to sales until it’s in the bin. Cash markets remain reasonably quiet with old crop stocks still putting pressure on track markets.

Source: Lachstock Consulting

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