Markets

Daily Market Wire 14 October 2022

Lachstock Consulting, October 14, 2022

Wheat markets gained overnight.

  • Chicago wheat December contract up US10 cents per bushel to 892.25c/bu;
  • Kansas wheat December contract up 12.25c at 982.25c/bu;
  • Minneapolis wheat December contract up 12.25c/bu to 979c/bu;
  • MATIF wheat December contract up €3/t to €356.25/t;
  • Black Sea wheat December contract up $0.50/t to $334.75/t;
  • Corn December contract unchanged at 693c/bu;
  • Soybeans November contract down 0.25c/bu to 1395.75c/bu;
  • Winnipeg canola Nov 2022 contract was up C$5.60 to $870.40/t;
  • MATIF rapeseed November 2022 contract up €0.75/t to €633.75/t;
  • ASX Jan 2023 wheat contract up A$5/t to $483/t;
  • ASX Jan 2023 barley contract down A$9/t to $330/t;
  • AUD dollar firmer at US$0.630.

International

A rise in the value of the US dollar overnight put a blanket on commodities and sent equities down hard. Over the next few hours this was promptly reversed. USD found an offer and equities fought back. Wheat caught a bid as the Russian ambassador pretty much indicated the corridor would not be renewed.

Conditions are so bad in Argentina there is some talk about export restrictions. Remember, Chicago Dec-22 was trading at $8/bu before a tank rolled over a border. Dec-22 wheat went home at $8.91/bu last night. For all we have been through on the war front, along with a 13mmt reduction in global ending stocks – is $0.91/bu enough risk premium?

India’s palm oil imports in September jumped to their highest in a year, boosted by strong demand ahead of the peak festival season and a steep discount to rival oils, a leading trade body said on Thursday.

Australia

Weather seems to be the big driver of sentiment on the east coast today. The entire east coast is experiencing some level of flood impact with minimal reprieve on the way, according to the 14-day forecast.  Limited liquidity was seen on all commodities as the ASX continued its rally to A$483/t.

Domestic truck freight rates have reportedly taken as sharp bounce in southern Queensland as demand builds. With recent weather events, there is the potential for harvest to be running at the same time in both the north and south of the country. This will add additional pressure to logistics and long haul availability.

 

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