Overnight futures markets:
Mixed for grains, lower for oilseeds with macros the driver.
- CBOT wheat up 3.75c to 428c,
- Kansas wheat up 0.5c to 428c,
- Corn down 4.75c to 337.5c,
- Soybeans down 6.5c to 967.75c,
- Winnipeg canola down C$2.5 to $512.6,
- Matif canola down 1.75€ to 377.5€,
- Dow Jones down 41.95 to 23397.74,
- Crude oil down US$1.15 to $55.61,
- AUD up to 0.763c,
- CAD up to 1.273c (AUDCAD 0.971),
- EUR up to 1.179c (AUDEUR 0.647).
The delayed Commitment of Traders (COT) report helped wheat to catch a bid. Soft Red Winter increased the short by 14,000 to -125,000 contracts, while Hard Red Winter increased the short by 1400 to -26,000 contracts, and spring wheat longs increased by 1000 to 4300 contracts. The fund position has likely increased in wheat since this data was compiled, with open interest increasing by 11,000. Russian cash prices held up surprisingly well, considering the ruble was down 1.3 per cent, following weakness in crude oil, which was down almost 2pc.
Soybean contracts closed lower on a weaker Brazilian real, which fell 0.6pc, as well as weakness in crude oil. Meal was down $1 per tonne, and soy oil was 20 points lower. NOPA’s crush report is out tomorrow, and the market is expecting an average of 4.4 million tonnes, which would market a significant increase on the September figures, but still be below last year’s numbers. The US bean harvest is nearing completion and the focus will shift to South American production; in Brazil, rainfall in the north is proving beneficial and putting pressure on prices.
Source: Lachstock Consulting
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