Markets

Daily Market Wire 19 January 2024

Lachstock Consulting, January 19, 2024

Markets firmed.

  • Chicago March 2024 wheat up 3c/bu to US585.5c/bu;
  • Kansas March 2024 wheat up 11.25c/bu to 605.25c/bu;
  • Minneapolis March 2024 wheat up 7.75c/bu to 688c/bu;
  • MATIF wheat March 2024 up €0.50/t to €217/t;
  • Black Sea wheat futures has not quoted since 11 August 2023;
  • Corn May 2024 up 1.25c/bu to 455c/bu;
  • Soybeans May 2024 up 6c/bu to 1224.25c/bu;
  • Winnipeg canola May 2024 up C$5.10/t to C$638.60/t;
  • MATIF rapeseed May 2024 up €7.50/t to €437/t ;
  • ASX March 2024 wheat up A$3.90/t to $370.50/t;
  • ASX March 2024 barley unchanged at A$298.50/t;
  • AUD dollar up 23 points to US$0.6575

International

Cold conditions seem to be sweeping through the whole northern hemisphere. Wheat found a bid based on a combination of winter kill concerns and technical buying. The cold snap will intensify throughout the US but will then be followed by some warmer weather – the concern is, should this be followed by another cold snap, the crop will be susceptible to winter kill. 

Egypt bought 360kmt of French and Russian wheat, by passing an offer from the Ukraine. Interestingly, France’s AgriMer lowered its estimate for soft wheat exports outside of the EU to 10.1Mt, down 100k mainly due to increased competition from Russia. 

Bangladesh is tendering on the 1st of Feb for 50kmt of wheat. 

Combined deliverable stocks of Spring wheat in Duluth and Minni is the lowest level since 2012. 

The Argentine corn crop is reported 23 percent in the pollination phase. 

The US Energy Information Administration says US ethanol stocks hit a 43-week high at 25.695 million barrels. 

The top and tail on Brazilian soybean production estimates continue to widen. Most of the market is sitting around 150Mt while some grower groups have indicated closer to 135Mt. Harvest has kicked off with early yields somewhat disappointing. 

Argy is still throwing around proposed changes to the current tax regime. The government sent a bill to Congress proposing the increase of Ag export taxes to 15pc and soybean by productions from 31 to 33pc. Most consider this unrealistic.

Australia

East coast track cereal markets were mostly unchanged yesterday, although delivered values firmed later in the afternoon due again to exporters fill requirements. 

ASX Mar 24 was also a couple of dollars firmer closing at $370/t. 

Canola values were happy to follow the offshore led rally yesterday with track values firming $5-$10. With some behind the scenes bidding showing up for sites with good execution. Another offshore rally last night may entice the grower to trickle out some tonnage. Thus far they have been happy to sit back and enjoy the last of the holiday period. 

A small kick was seen in WA wheat values yesterday for high pro milling grades, with most of the interesting stemming from Kwinana. 

Values ended the day in Kwinana at $406/t FIS APW1, H2 $415/t and H1 $428-430/t 

Canola values were unchanged with CAN at $700/t FIS and CAG anywhere in the $660-$670 range depending on port zone.

 

Grain Central: Get our free news straight to your inbox – Click here

HAVE YOUR SAY

Your email address will not be published. Required fields are marked *

Your comment will not appear until it has been moderated.
Contributions that contravene our Comments Policy will not be published.

Comments

Get Grain Central's news headlines emailed to you -
FREE!