MATIF wheat made new highs. US markets fell. Canola and rapeseed firmed a little.
- Chicago wheat December contract down US2.25 cents per bushel to 820c/bu;
- Kansas wheat December contract down 6.75c/bu to 827.25c/bu;
- Minneapolis wheat December down 10.25c/bu to 1016.75c/bu;
- MATIF wheat December contract up €1.50/t to €297/t;
- Corn December contract down 2.25c/bu to 573c/bu;
- Soybeans January contract down 11.75c/bu to 1265.25c/bu
- Winnipeg canola January 2022 contract up C$10.40/t to $1014.10/t;
- MATIF rapeseed February 2022 contract up €3/t to €694.25/t;
- US dollar index was down 0.3 to 95.5;
- AUD weaker at US$0.726;
- CAD weaker at $1.262;
- EUR firmer at $1.136;
- ASX wheat January 2022 up A$7/t to 379/t;
- ASX wheat January 2023 up $7/t to $386/t.
CME wheat fell -2.25 usc/bu, Kansas wheat eased -6.75 usc/bu while Minni wheat shed -10.25 usc/bu. Matif wheat rallied €1.5/t and Black Sea wheat was quoted at 40.25/t higher. Chicago corn fell 2.25usc/bu while Dalian corn was CNY$13/t higher. Soybeans were 11.5usc/bu lower, meal fell 43.50/st while bean oil was basically unchanged. Canola bounced back – Matif was up €3/t while Winnipeg was up CAD$10.40/t – while on vegoil, palm snapped back, putting on MYR$99/t. The Dow was off 60 points, gold was down $8/oz, crude rallied 50usc/bbl while the Aussie went home at 0.7277.
Matif wheat made fresh contract highs last night, printing values not seen since 2007. Despite many of the more vocal global wheat traders taking the sword to the contract at the recent Global Grains conference in Geneva, citing a lack of delivery points it is still relevant to say it is a deliverable contract and, given the French quality problems and over exporting higher grades, it still reflects the underlying problem with the European wheat balance sheet.
Dalian Iron Ore Futures made fresh contract lows yesterday – at CNY$512.50/mt we are now back to levels not seen since the end of 2018. Interestingly Chinese Steel Rebar futures have also traded lower, and a clear indication of the construction slowdown in China and an environment that will be hard for the AUD to rally.
The hits keep coming for the Canadian exporter. After a horribly short wheat crop a combination of huge storms at port and landslides cutting rail lines there are over 20 vessels at the Port of Vancouver waiting to be loaded. The term force majeure is now being thrown around given the monumental delays.
Corn should get a good run at finishing the US harvest with a break in the weather. Corn in the US was 91pc harvested last Tuesday, soybeans 92pc.
There is a hard push for headers to strip as much as they can before the rain arrives today and tomorrow in eastern Australia.
NNSW and Queensland are on the home straight, but Southern New South Wales and the Central Western region are struggling to get a clear run at harvest as moisture continues to thwart progress.
Grain quality since the rain last week has been variable with eastern NSW seeing some downgrades and issues with falling numbers and test weight. Western areas have avoided significant rainfall and still are achieving good quality grades.
Markets have been negotiating with the quality profile risk with premiums emerging for sellers willing to commit to fixed grade. Fair to say though the rain has spooked significant grower selling liquidity and is helping squeeze some trades with November commitments.
Source: Lachstock Consulting