Markets

Daily Market Wire 14 November 2023

Lachstock Consulting November 14, 2023

Corn, soybeans and rapeseed gained more than 2 percent.

  • Chicago December wheat up US3.75c/bu to 579c/bu;
  • Kansas December wheat up 1.5c/bu to 641.5c/bu;
  • Minneapolis Dec wheat down 1.75c/bu to 728.75c/bu;
  • MATIF wheat Dec up €1.50/t to €233.75/t;
  • Black Sea wheat has not quoted since 11 August;
  • Corn December up 13.25c/bu to 477.25c/bu;
  • Soybeans May 2024 up 33.5c/bu to 1405c/bu;
  • Winnipeg market Remembrance Day holiday, previous close May 2024 contract was C$713.60/t;
  • MATIF rapeseed May 2024 up €11.50/t to €450/t;
  • ASX January 2024 wheat down A$2/t to $387/t;
  • ASX January 2024 barley up A$7.50/t to $337.50/t;
  • AUD dollar up 17 points to US$0.6377.

International

Consultancy AgRural cut its 2023-24 Brazilian soybean crop estimate by 1.1 million tonnes (Mt) to 163.5Mt and warned it could make additional cuts to the forecast this month if weather doesn’t improve. Besides the erratic weather, there is a need for some replanting of soybeans.

Southern Brazil picked up more rainfall over the weekend, with falls expected to continue through this week. Rainfall is forecast to shift north into major corn and soybean areas next week. Dryness continues to be a concern in the centre and north, with flooding potential in the south.

Brazil’s Mato Grosso Institute of Ag. Economics noted that as at 10 Nov, the 2023-24 soybean planting in Mato Grosso was estimated to be 90pc complete (96pc previous year, 96pc avg).

Industry analysts said recent purchases of 3Mt of US soybeans by China Grain Reserves Corporation, Sinograin, even though more expensive than Brazilian origin, are a goodwill gesture ahead of President Xi meeting with President Biden this week.

Ukraine’s Ag. Ministry reported cumulative 2023-24 grain exports are at 10.0Mt (-33pc from previous year), including wheat at 4.8Mt (-9pc), maize at 4.1Mt (-46pc) and barley at 0.7Mt (-40pc).

Iran’s state feed importer, SLAL, reportedly seeks up to 180,000 tonnes of feed maize from Brazil, Europe, or the Black Sea region as well as 120,000 tonnes of soymeal from Argentina, Brazil or India for Nov/Dec shipment.

US private exporters reported recent week sales of 204kt of soybeans to China during the 2023-24 marketing year and 144kt of corn to Mexico.

Australia

Local markets ended the day softer, with the ASX eastern Australia Jan 24 wheat contract closing down A$2/t to land at $387/t. Although there was some competition up country for grain as it comes off the header through southern NSW and Vic. Protein wheats are still commanding the most attention as millers pursue the grain at harvest. Canola was mostly unchanged, with both yields and oil content improving as harvest progresses into the southern growing regions.

GrainCorp’s harvest update for the week ending 13 November noted it received 821kt, taking total receivals to 2.34Mt. Harvest activity is now mostly complete in Qld, with receivals still trickling into the Goondiwindi region, and slowing around the Burren Junction, Moree and Narrabri sites in northern NSW. Harvest activity in central and southern NSW continues to pick up pace, with sites receiving canola, barley and wheat. In Victoria, harvest activity is underway in most regions, thanks to improved weather conditions over the week. Sites are predominantly receiving canola and barley, with wheat beginning to flow into the northernmost sites. The overall quality across all commodities has been excellent.

 

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