Wheat, corn and oilseeds all down.
- CBOT wheat down 11.75c to 456c,
- Kansas wheat down 10.25c to 454c,
- Corn down 7.75c to 368.5c,
- Soybeans down 14c to 924.25c,
- Winnipeg canola down C$7.8 to C$494.3,
- Matif canola down €0.5 to €366
- Dow Jones up 5.28 to 21998.99,
- Crude Oil up 13c to 47.68c,
- AUD down to 0.7819c,
- CAD up to 1.2755c (AUDCAD 0.9973),
- EUR up to 1.1735c (AUDEUR 0.6662).
With an ever-increasing Russian crop, and thoughts of 80 million metric tonnes on the table, coupled with an expected increase in EU production, the market never stood a chance. Bids for Russian wheat continue to decline by the day, in accordance with increases in expected production. On top of this, the market seems content with Canada being pegged at 25mmt and Australia at 23.5mmt as optimism continues to grow in many once drought-affected regions.
The corn market was destined to fail on the back of the pressure applied to both wheat and soybeans. A hefty southern-hemisphere supply is putting stress on the market, and global corn numbers are feeling somewhat cumbersome.
With increased rainfall forecasts over the short term, bean ideas are on the rise. Daily sales remain strong, with 132,ooomt sold to China, and another 132,000mt sold to an unknown destination. Due to current Brazilian real levels, Brazilian farmers are showing a reluctance to sell. As a result, Chinese importers have turned direct buying interest to the US.
Australia’s rainfall forecast is relatively unchanged, with Victoria, southern NSW and southeast South Australia continuing to enjoy healthy rainfall. There is a sprinkle on the way for northern NSW, but not enough to bring about any significant levels of excitement.
Source: Lachstock Consulting