Corn and beans closed more than one per cent lower overnight, led by a big downshift in wheat futures.
- CBOT wheat was down -15.25c to 507c,
- Kansas wheat down -12.5c to 481.5c,
- Corn down -4c to 374.75c,,
- Soybeans down -13c to 903.5c,
- Winnipeg canola down C$0.60 to $480.20,
- MATIF canola down €3.25 per tonne to €364.75,
- Dow Jones down -103.88 to 25439.39,
- Crude oil up to $54.91,
- AUD up to 0.7099c,
- CAD up to 1.32983c, (AUDCAD 0.94403),
- EUR up to 1.12943c (AUDEUR 0.6284).
Wheat had a tough session overnight taking a -15.25c hit. The positive spin that the likelihood of upcoming trade negotiations has been keeping the market afloat, until now. It has been reported that Trump would consider a 60 extension before additional tariffs were introduced. Current headlines are now suggesting that China and the US are far apart on reform demands. Russian FOB prices were flat and remain $6 off their highs of $241.
The corn market also took a hit of -4c on the back of the trade negotiation debacle. Informa has pegged corn acres at 91.591 and the Rosario exchange increased its corn crop by 2.5mil to 46.5mil.
The bean market is also suffering from the 60 day trade delay. We saw negative sales of 612k with the 6 week old data showing cancellations of 444k from unknown as well as 807k from China. Rosario have increased the Argentinian by 2mil up to 52mil from last month.
Much the same domestically with little to no rain on the forecast with markets remaining soft to flat on the east coast. Signs of life are beginning to enter the canola market with growers waiting for this to filter its way across to the east coast. Southern wheat markets remain sluggish with consumers either still working through their harvest stock, or end users reducing their capacity. To go with this, the sleeping barley market isn’t helping the cause with a lack of a Saudi tender along with the anti dumping regulations being thrown around in China.
Source: Lachstock Consulting