Markets firmed

• Chicago wheat December contract up US2.5cents per bushel to 597.75c;
• Kansas wheat December contract up 5.25c/bu to 557.75c;
• Minneapolis wheat December contract up 1.5c/bu to 550.25c;
• MATIF wheat December contract up €2.50/t to €212.75;
• Corn December contract up 5.5c/bu to 425.75c;
• Soybeans January contract up 6c/bu to 1175.75c;
• Winnipeg canola January contract up C$5.80/t to $569.40/t;
• MATIF rapeseed February contract up €4.25/t to €414.50;
• Brent crude January up US$0.59 per barrel to $44.34;
• Dow Jones index down 345 points  to 29,438;
• AUD unchanged at $0.729;
• CAD firmer at $1.309;
• EUR weaker at $1.184.
  

International

• The latest update on Pfizer’s coronavirus vaccine has effectiveness rates pegged up to 95pc, and they’re reportedly pushing for emergency authorization to begin releasing it “within days”.  Still no word on how quickly production can ramp up for any of the vaccines though
• Following up on yesterday’s notes about the rain outlooks in the southern plains of the US, the latest models have shifted slightly and are putting a bit more moisture into SW Kansas and parts of the Panhandle.  The storm’s still ~4 days away from hitting the southern Plains, so more adjustments may still yet come
• Soybean worries have continued to gain strength with the ongoing dryness into next week’s Brazilian weather maps.  Some more moisture on the radar for southern Brazil into later next week, but overall moisture deficits to date have held up concerns
• EIA ethanol figures had production at 962,000 barrels, down 15,000 barrels from the week prior but with a 44,000 barrel growth in stocks.  Despite recent strong ethanol crush figures, there are some growing concerns about margins there with the weakening of ethanol prices during the corn rally and weak demand ideas into the holiday season
• US flash export sales had 140,000t of unknown corn sales reported. It could be, potentially, the Chinese business that has been rumoured.
• The UN’s FAO jumped into the news yesterday with comments made by an FAO economist at Global Grain Geneva 2020 virtual conference that they had not seen any evidence of coronavirus being spread through food shipments.  There’s been increased backlash against Chinese government claims to that effect, with complaints being raised about increased customs scrutiny interfering with trade.
• Argentine port strikes are still underway, with more meetings scheduled but nothing resolved yet – albeit with more government pressure to reach an agreement.

Australia

• SA’s new hard lockdown starts at midnight tonight for the next 6 days.  We don’t expect there to be significant interference in harvest and grain movements, but it is certainly a nuisance for those living there
• Bulk sites are continuing to fill up rapidly across NSW, with quick deliveries and the large harvest seeing bunkers filling quickly
• Weather maps are still calling for light showers into later this weekend across the east coast, but nothing significant.  Extended maps remain warm and dry for good harvest conditions.