Monday’s markets mostly were firmer.
- Chicago wheat December contract up US3.75 cents per bushel to 545.75c;
- Kansas wheat December contract up 2.25c/bu to 473.5c;
- Minneapolis wheat December contract down 1.75c at 530.50c;
- MATIF wheat December contract up €0.25 per tonne to €188.75;
- Corn December contract up 1c/bu to 369.5c;
- Soybeans November contract up 3.5c/bu to 999.5c;
- Winnipeg canola November up C$5.90 to $523.30;
- MATIF rapeseed November contract up €2/t to €384.25;
- Brent crude November contract down US$0.22 per barrel to $39.61;
- Dow Jones index up 328 points to 27,993;
- AUD steady at $0.728;
- CAD steady at $1.318;
- EUR higher at $1.187.
Markets closed higher overnight, with world markets remaining well supported. China’s Dalian corn futures had another up day. In another seemingly contradictory move, China has banned German pork due to African Swine Fever being found in a wild boar. This will force China back to the US and Spain for its pork supplies.
Global demand is still showing no signs of easing, with Saudi Arabia buying 745,000t of wheat in its latest tender. Jordan has also put its hand up for 120,000t of milling wheat.
Firm Russian cash markets are doing nothing to restrict movement, with the three-weekly increase in physical shipments. Cash prices were quoted at US$224/t free on board (FOB) for 12.5 per cent protein, up $8/t over the week. Additionally, Ukraine also saw its FOB values trade higher . These moves are significant as Australia works out what “increased inspections” mean for its export program to China.
The debate around the latest corn guesstimates from the USDA has centred around Ukraine production which, according to many in the trade, could be 5 million tonnes (Mt) overdone. Additionally, the 7Mt China corn import number is clearly underdone. Just under 57Mt of corn has been released from the strategic reserves in the Chinese auction program.
China has put Australia on notice over wheat exports.
New-crop wheat markets were softer again on the boards by AU$2-3/t, new-crop barley markets kicked off the week unchanged with Port Kembla and Victorian values around a $224-225 /t track level for BAR1.
New-crop sorghum for March-April 2021 delivery has rallied over recent weeks, with values now above $300/t on to the Darling Downs and the Brisbane track market in Queensland.
The Bureau of Meteorology’s eight-day forecast predicts up to 25 millimetres of rain across South Australia; with crops out in head, this will go a long way to helping grain fill, and grain fill in eastern states will also benefit from a forecast 10-15mm.
Source: Lachstock Consulting