Overnight futures markets
Grains lower, oilseeds slightly firmer
- CBOT wheat down -11c to 485c,
- Kansas wheat down -14c to 516.5c,
- Corn down -3.5c to 391c,
- Soybean up 9c to 1060.25c,
- Winnipeg canola up $C1.1 to $C523.1,
- Matif canola up €0.75 to €349.5.
- The Dow Jones up 72.85 to 24946.51 ,
- Crude Oil down -0.18c to 62.16c,
- AUD down to 0.77146c,
- CAD up to 1.30922c, (AUDCAD 1.00998)
- EUR up to 1.22872c (AUDEUR 0.6277).
Chicago fell US11cents/bushel (c/bu) and Kansas lost 14c/bu as weather in the US continued to shape the market.
Rain has fallen in some of the thirstiest Hard Red Winter wheat regions but hasn’t been able to make its way down through southern Kansas and into Oklahoma. Northern Kansas looks likely to see some rain over the next few days but time will tell if it will be enough to make any significant inroads.
While there is a chance of rain over the next couple of days, the period beyond that, the 6-10 day outlook, is hot and dry. Potential for relief would come in the 8-14 day window.
Either way the markets have found an excuse to soften, as they often do when likely rain is the only thing to talk about.
Corn fell 3.5c/bu on the back some technical selling along with the softer wheat market. Short term demand is still positive for corn.
Despite a softer session, the weakening in the wheat market coupled with the 266,000 contracts Commitment of Traders (COT) long, corn is still well supported.
Soybeans climbed 9c/bu with the COT showing a 147,000 contracts long vs 149,000 long last week.
The Argentinian discussion continues with more suggestions hovering around the 40 million tonnes soybean crop forecast figure. There is rainfall on the horizon in some parts of Argentina but the likelihood is its going to be too far north to provide any significant relief.
Domestically, the next four days don’t look like they’ll provide us with any significant rain, with all the action to take place in the 4-8 day window.
The main focus is on NSW with up to 50mm expected to fall across the entire wheat belt.