Markets

Daily Market Wire 18 October 2021

Lachstock Consulting, October 18, 2021

Friday’s futures continued to rise. European rapeseed and wheat led, advancing 2pc.

  • Chicago wheat December contract up US9.25c/bu to 734c/bu;
  • Kansas wheat December contract up 12.75c/bu to 743.75c/bu;
  • Minneapolis wheat December up 8.75c/bu to 968.75c/bu;
  • MATIF wheat December contract up €5.50/t to €276/t;
  • Corn December contract up 9c/bu to 525.75c/bu;
  • Soybeans November contract up 11.5c/bu to 1217.75c/bu;
  • Winnipeg canola November contract up C$5.30 to $915.50/t;
  • MATIF rapeseed November contract up €12.50/t to €672.50/t;
  • US dollar index was down 0.1 to 93.9;
  • AUD weaker at US$0.741;
  • CAD weaker at $1.238;
  • EUR weaker at $1.159;
  • ASX wheat January 2022 up A$4/t to $343/t;
  • ASX wheat January 2023 up A$3/t to $357/t.

International

Firmer wheat markets yet again on Friday overseas, with Chicago closing +9 1/4¢, KC +12 3/4¢, Minny +8 3/4¢, and Matif +5.5€ on the earlier close.  Corn was up nine cents and beans +11.5¢ (Matif +12.5€, Winnipeg +$5.3).  Crude oil was up nearly a buck to $82.3 WTi / $84.9 Brent and the DOW also gained 382 points.  The AUD is trading at 74.1¢, the CAD $1.237, and the EUR $1.159 (with the dxy at 93.9).

Massive export sales flashes confirmed the ongoing rumours about Chinese bean purchases through last week, 132,000t to China, 396,000t to unknown and 327,000t to unknown.  Both the unknowns were expected to be China, transactions with different counterparties.

Regular export sales were also very strong. Wheat at 568,000t, corn 1 million tonnes (Mt), soybeans 1.1Mt (640,000t destination China, although part of that was switched from unknown) and milo/sorghum was a rounding error again though, with 2,500t only.

In the same vein there have been more rumours about China purchasing wheat from France and corn from the US and Ukraine. There is no confirmation in either case, but the speculation is ongoing.

National Oilseed Processors Association soybean crush was 153.8mbu, below most ideas but still high for September.

Black Sea weather maps are bringing more chances of rain for central Ukrainian areas later this month but still next to nothing into the Russian Volga.

US row crop areas are slowing picking up field work again after the rains later last week. The dry week ahead has farmers looking forward to making good headway in the ongoing harvest. A widespread storm event is forecast for almost all the Brazilian soybean belt. Planting still is ticking along there amid optimism about new crop production levels pushing up with more reasonable conditions.

Australia

We’re finally getting a dry week for the east coast after the last few storms, and extended run maps aren’t bringing any rain into next week yet.

The forecast rains for WA remain mostly coastal, though still being watched to see if they shift further inland.

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