Markets

Daily Market Wire 18 September 2020

Lachstock Consulting, September 18, 2020

Wheat and soybeans firmed 2pc.

  • Chicago wheat December contract up US14.25 cents per bushel to 556.25c;
  • Kansas wheat December contract up 12.5c/bu to 487.5c;
  • Minneapolis wheat December contract up 10c at 541.50c;
  • MATIF wheat December contract up €3.75 per tonne to €191.75;
  • Corn December contract up 3.5c/bu to 375.25c;
  • Soybeans November contract up 17.25c/bu to 1028.5c;
  • Winnipeg canola November up C$1.70 to $531.90;
  • MATIF rapeseed November contract down €0.75/t to €392.50;
  • Brent crude November contract up US$1.08 per barrel to $43.30;
  • Dow Jones index down 130 points to 27,902;
  • AUD firmer at $0.732;
  • CAD firmer at $1.315;
  • EUR firmer at $1.185.

 

Markets:

  • When money is cheap – assets and commodities will trade higher – or at least that’s what I was taught at school. How that translates to our markets is less than clear, particularly with such a heavy weighting to China buying. However, it would seem the bid side has deep pockets. Apparently, the Chinese corn buyer also does, be it physical or futures. The DCE (Dalian Commodity Exchange) corn futures contract had another up day closing near the contract high.
  • Corn is at the front of the peloton with wheat tucked in behind, however it’s not just a free ride with a few little spot fires that warrant attention. Russian winter crop plantings are searching for moisture. Close to 50pc is in the ground but the forecast is providing little in the way of relief. The Ukraine has indicated the worst winter wheat planting conditions in 10 years. Additionally, WA and Argentina are both in need of a soaker.
  • Saudi is in for barley, announcing a tender for 540,000t. With back of envelope numbers all suggesting WA through to Vic should be the front of the queue it will be interesting to see if the numbers reflect Australian replacement.
  •  It’s not all bullish however with US wheat arguably pricing itself out of the mix in export trade. The market was looking for 500,000t of exports this week but only got 335,700t.
  • Biden pays 1.80, Trump 2.00. The first debate is scheduled for the 30th of Sept.

Australia:

  • New crop wheat markets the bids and offers ratcheted a fraction higher yesterday by $1-2/t, the January ASX Wheat contract settled the day at $286/t
  • New crop canola markets again firmed locally with values up $4-5/t with east track grower bids ranging from $600-605/t
  • Barley found some strength in WA late yesterday with the market up $5/t with public FIS grower bids at $245/t Kwinana zone
  • Scattered showers pushed through parts of SA EP region with Cummins recording 10mm and there were scattered showers through Western Vic. The main front looks set to hit leading into the weekend for SA and Vic.

 

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