Canola and rapeseed strengthened. All other markets saw mixed, small moves.
- Chicago wheat December contract down US1.5c/bu to 687c/bu;
- Kansas wheat December contract up 3.75c/bu to 686.25c/bu;
- Minneapolis wheat December down 2.75c/bu to 876c/bu;
- MATIF wheat December contract up €1.25/t to €239/t;
- Corn December contract down 4.25c/bu to 513.25c/bu;
- Soybeans November contract down 1.75c/bu to 1284.75c/bu;
- Winnipeg canola November contract up C$8 to $861.70/t;
- MATIF rapeseed November contract up €5/t to €575.75/t;
- US dollar index unchanged at 92.6;
- AUD firmer at US$0.737;
- CAD firmer at $1.265;
- EUR firmer at $1.181;
- ASX wheat September contract down A$6/t to $326.50/t;
- ASX wheat January 2022 unchanged at $330/t.
Early overnight gains couldn’t hold into the day session, although we firmed up a bit later to close mixed – Chicago wheat down a cent and a half, KC +3 3/4¢, Minny -2 3/4¢, and Matif +1.25€ on the earlier close. Corn gave up 4 1/4¢ and beans -1 3/4¢ (Matif +5€, Winnipeg +$8). Macro markets had crude oil a bit over seventy cents firmer to $70.5 WTi / $73.5 Brent and the DOW gained 262 points (up more early on). The AUD is trading around 73.6¢, the CAD $1.265, the EUR $1.181, and the USD index a 92.6.
Markets are looking for more confidence on the next story to trade as we start to move into more row crop harvest in the US. Field work has been kicking along fairly reasonably with far more harvest expected to open up in the next week and a half amid dry corn belt weather.
Regular weekly export inspections were poor for corn and beans, partially as expected given US Gulf logistics problems, at 0.138Mt and 0.195Mt respectively, and reasonable for wheat at 0.5 Mt. Milo/sorghum came in at only 0.5kt.
Estimations about the resumption of “normal” export logistics from the US Gulf remain varied. Little progress is reported to be happening but still some time away on many of the impacted terminals.
Weekly crop progress figures were also published post close. Corn is 4pc harvested. Soybeans are 38pc mature, dropping leaves. Winter wheat is 12pc planted. Milo is 21pc harvested.
Crop condition reports were rated 57pc good-to-excellent soybeans, 58pc corn, both of these numbers deserve less consideration now that harvest has begun.
Morocco will be suspending their import tariff on non-durum wheat starting 1 November. It is customary for Morocco, around the time of local harvest, to increase tariffs to protect domestic prices and reduce tariffs later in the year to help keep import costs down.
Saudi Arabia’s SAGO wheat tender saw them buy seven boats at an average US$356/t C&F ($351 Jeddah).
Markets started the week slightly softer amid little trade.
Old crop demand has slowed down to a trickle as we approach harvest.
Frost concerns in WA continue to top the focus, with various ideas on how much production has been impacted.
Source: Lachstock Consulting
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