Markets closed lower on some profit-taking across the board.

• Chicago wheat March contract down 8 cents per bushel to 548.25c;
• Kansas wheat March contract down 4.75 cents to 461.25c;
• Minneapolis wheat March contract down 0.25c/bu to 538.5c;
• MATIF wheat March contract down €0.75 to €185.25/t;
• Corn March contract down 3c to 387c;
• Soybeans January contract down 0.25c/bu to 928.5c;
• Winnipeg canola January contract down C$0.80/t to $465.60/t;
• Winnipeg canola March contract down C$0.30/t to $474.80/t;
• MATIF rapeseed February contract up €1/t to €407.50/t;
• Brent crude February contract up US$0.07 to $66.17 per barrel;
• Dow Jones index down 28 points to 28246 points;
• AUD unchanged at $0.6850;
• CAD stronger at $1.311;
• EUR weaker at $1.111.

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The rally finally hit a stumbling block today, with some profit taking driving a correction across the board.

Chicago wheat ended off 8¢ to 548.25¢, KC -4 3/4¢ to 462 1/4¢, Minny -1/4¢ to 538.5¢, and Matif -0.75€ to 185.25¢ on the earlier close.  Corn gave up 3¢ to 387¢, Beans -1/4¢ to 928.5¢, and Matif rapeseed picked up another euro to 407.50€ (Winnipeg -30¢ March to 474.8).  Crude oil was mostly unchanged, with Brent around $66.1, WTI $60.9, and the DOW gave up 28 points.  The AUD is around 68.5¢, the CAD $1.311, and the EUR $1.111

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Markets have been quiet this week, with limited global news, and traders looking towards the Christmas holidays.

Weather problems in the EU and Black Sea regions, South America, and the United States are continuing, but this is nothing new to the market.

China’s trade talk has taken on a more bearish tone in discussions, as more questions arise about if and how it will fulfil alleged commitments towards $40 billion in agricultural purchases.

We are yet to see any new export sales flashes, and large prompt purchases are arguably needed to hit those levels.

Egypt’s GASC apparently intends to resume inspections at loading in an attempt to cut costs.

This seems to be a rollback to the state of play from a few years ago, though there have been no indications about how GASC will handle corruption problems if they again arise.

We’ll be watching to see if these are included in the next tender, and how they will be structured.

Australia

Domestic markets have been quiet.

A heatwave continues to bake South Australia and Victoria.

While southern Australia’s harvest is still rolling, bans on harvest because of associated fire risk may halt activity in some districts.

Cash markets took a slight breather yesterday, and traded mostly unchanged across the boards, while the ASX January wheat contract has been trading at AU$357-$358 per tonne.

A little rain is forecast for pockets of south-east Queensland and northern New South Wales up to Christmas, but Bureau of Meteorology predictions suggest only a few millimetres will fall in cropping areas.

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.