Markets

Daily Market Wire 16 September 2021

Lachstock Consulting, September 16, 2021

Wheat and corn markets firmed about 2 per cent overnight. The oilseeds firmed about 1pc.

  • Chicago wheat December contract up US11.5c/bu to 712.25c/bu;
  • Kansas wheat December contract up 14.25c/bu to 716c/bu;
  • Minneapolis wheat December up 17.5c/bu to 904.75c/bu;
  • MATIF wheat December contract up €5.50/t to €248.50/t;
  • Corn December contract up 13.25c/bu to 533.5c/bu;
  • Soybeans November contract up 12c/bu to 1294.5c/bu;
  • Winnipeg canola November contract up C$7.50 to $879.80/t;
  • MATIF rapeseed November contract up €3/t to €590/t;
  • US dollar index down 0.2 to 92.5;
  • AUD firmer at US$0.733;
  • CAD firmer at $1.263;
  • EUR firmer at $1.182;
  • ASX wheat September contract unchanged at $326.50/t;
  • ASX wheat January 2022 up $5/t to $335/t.

International

Wheat markets continue to firm on the boards with Chicago closing +11.5¢, KC +14 1/4¢, Minny +17.5¢, and Matif +5.5€ on the earlier close.  Corn was up 13 1/4¢ and beans +12¢ (Matif +3€, Winnpieg +$7.5).  Macro markets had crude up some $2 to 72.6 WTi / $75.5 Brent as Nat Gas continues to spike and the DOW was back up 236 points.  The AUD is trading at 73.3¢, the CAD $1.263, and the EUR $1.182 with the dxy at 92.5 (off a tenth).

Among USDA flash export sales reports were cancellations of two boats of new crop beans destination China and three boats to destination unknown, likely China.

Markets are now debating how many Brazilian bean cargoes were purchased by Chinese buyers, offsetting some of the US cancellations. Markets are also debating how many bushels will remain available from Brazil for shipment at the end of the year. Bulls are hoping, given the premium paid for the Brazilian cargoes, that firmer Chinese demand will need to shift back hard to the US. Bears are pencilling this in as “lost” demand to the US balance sheet.

Weekly National Oilseed Processors Association (NOPA) crush report was 158.8 million bushels (mbu), almost 5mbu higher than expectations.

Regular weekly US ethanol production figures were up 14,000bpd.

Corn low test weight, low yields and disease problems continue to attract attention in that market as harvest expands across the US Midwest.  Most are still expecting later fields to run better but the risk flag remains.

Regular export sales reports are due again tomorrow, data a week delayed and, despite the cancellations, markets are generally expecting a big bean figure.

Australia

Local markets firmed yesterday, wheat gaining some $4-5/t following the global board rally, and canola bids up $20/t in places.

Traders remained focused on new crop production and export potential.

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