Markets

Daily Market Wire 16 March 2020

Lachstock Consulting, March 16, 2020

Market were slightly easier on Friday.

  • Chicago wheat May contract up US0.5¢/bu to 506¢;
  • Kansas wheat May contract down 1.25c to 431.5¢;
  • Minneapolis wheat May contract down 1¢ to 508¢;
  • MATIF wheat May contract down €0.25/t to €177.5/t;
  • Corn May contract unchanged at 365.75¢;
  • Soybeans May contract down 10.75¢/bu to 848.75¢;
  • Winnipeg canola May contract up C$2.60/t to $453.60/t;
  • MATIF rapeseed May contract down €4.25/t to €352.5/t;
  • Brent crude May contract up US$0.63 per barrel to $33.85
  • Dow Jones index up 1985 points to 23186;
  • AUD weaker at $0.6183;
  • CAD firmer at $1.3802;
  • EUR weaker at $1.1109.

Market news

Ags were more muted in Friday trading, with Chicago wheatended up half a cent to 506¢, KC -1 1/4¢ to 431.5¢, Minny -1¢ to 508¢, and Matif off a quarter euro to 177.5€ on the earlier close.  Corn was unchanged while beans broke 10 3/4¢ to 848 3/4¢ with renewed notice of the absence of Chinese buying and big South American sales, and Winnipeg ended up $2.6 to $453.6 (Matif -4.25€ to 352.5€).  Crude oil firmed by about half a dollar (after selling down more leading into the day session) to $31.7 WTI / $33.9 Brent after announcements that the US will fill their strategic oil reserves, and the DOW was up 1985 points on the close.  The AUD’s firmer to 62.7¢ currently after the US rate cut (AUD traded in the 61¢ range most of Friday), the CAD $1.383, and the EUR $1.115.
Soybean futures fell sharply in Friday trading with the market paying renewed attention to the absence of Chinese buying and big South American sales.  Ethanol futures again closed lower.  Ethanol margins have already been squeezed through the season with the firmer domestic corn basis, weak ethanol prices, and blending waivers, which could all prompt another wave of processing-plant idling. This could reduce corn demand.
Weather forecasts for grain-producing areas in the Black Sea region keep show some welcome rainfall is likely.  Some parts of southern Russia are starting to plant in extremely dry conditions and are worried about the dryness of spring so far, as well as warmer-than-average temperatures. However, winter-wheat conditions remain generally positive in the mild conditions.  France and parts of Germany are excessively wet, and a few worries about spring planting there is still cropping up.  Winter-crop conditions are also pegged slightly lower, all about as expected with recent conditions.

Australia

Barley prices continued to rise through Friday, with more reports of Chinese business done and questions about the depth of origination. Barley markets were up some $20-$25 per tonne over the in Western Australia, and $15/t or so in Victoria.  Wheat prices firmed slightly over last week. Rainfall was a little less in the central wheatbelt of WA than most had hoped, with many districts seeing only 5-10 millimetres.  The absence of rain in many South Australian growing areas is of concern, with next forecast in short and longer-term models.
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