Futures were approximately one per cent firmer.

• Chicago wheat March contract up 6.5 cents per bushel to 556.25c;
• Kansas wheat March contract up 5 cents to 467c;
• Minneapolis wheat March contract up 1.75c/bu to 538.75c;
• MATIF wheat March contract down €0.50 to €186/t;
• Corn March contract up 2c to 390c;
• Soybeans January contract up 6.75c/bu to 928.75c;
• Winnipeg canola January contract up C$4.40/t to $466.40/t;
• MATIF rapeseed February contract up €3/t to €406.50/t;
• Brent crude February contract up US$0.46 to $65.80 per barrel;
• Dow Jones index up 31.27 points to 28267.16 points;
• AUD weaker at $0.6850;
• CAD unchanged at $1.316;
• EUR stronger at $1.116.

.

The rally continued through Tuesday in the US, pushing Chicago +6.5¢ to 556 1/4¢, KC +5¢ to 467¢, and Minny +1.75¢ to 538.75¢ while Matif closed off 3/4€ to 186€ on the earlier close. Corn picked up 2¢ to 390¢, Beans +4 3/4¢ (March) to 940 3/4¢ and Matif rapeseed ended up 3€ to 406.5€ (Winnipeg +$4.2 to $475.1 March). Crude oil has picked up nearly half a buck, taking WTI to $60.6/barrel and Brent $65.9, while the DOW is back off intra-session highs in the low 28.3 range to end +31 points on the day. The AUD is about 68.5¢, the CAD $1.316, and the EUR $1.116 – though the pound has given back some of the immediate post-election gains and is trading around $1.313 with renewed concerns about a potential “hard” Brexit.

 

With firm details few and far between, speculation continues on the trade deal.

One of the suggestions to come out recently has been that China will play paper games and include trade through Hong Kong in “reaching” the supposed commitments.

No response from the US side yet, though comments from US trade representative Robert Lighthizer the other day suggested that he intends to hold China to account if it does not follow through.

Given the limited information released, though, it seems uncertain how this could be defined.

Meanwhile, the USMCA appears back on track and there’s talk of a vote as early as Thursday in the US House.

The US house has also approved measures to extend a biodiesel tax credit out to 2022.

South American crop conditions remain on watch.

As we noted yesterday, there are some good showers on the way for Brazil later this week and into most of Argentina next week; there’s various talk of confirmed crop damage continuing to circulate as some analysts cut their numbers.

At the same time, there are still no real improvements to the maps for Ukraine and Russia, though with the crop going into dormancy the timing is less critical there.

Australia

Aussie temps continue to ramp up.

South Australia set to reach into the mid 40s today and parts of Victoria much the same.

Headers continued to roll in the paddocks yesterday. There has been a total fire ban day declared for the Wimmera district where large part of the crop still yet to come off.

Viterra receivals have hit 3.62Mt for the 19/20 harvest and CBH total 9.53Mt with both networks still receiving grain as the later areas come to a tail end before Christmas.

Aussie markets finished the day in the green again with majority of markets up another $1-2/t. ASX Jan traded at $356-357/t and barley Jan traded $287-290/t range.

 

Please note that Lachstock offices will be closed for Christmas, Boxing Day, and New Year’s Day and any responses during the holiday window may see some delays.