Markets

Daily Market Wire 19 October 2021

Lachstock Consulting, October 19, 2021

French wheat weakened one per cent. Other markets firmed in fractions.

  • Chicago wheat December contract up US2.25c/bu to 736.25c/bu;
  • Kansas wheat December contract up 5.25c/bu to 749c/bu;
  • Minneapolis wheat December down 1c/bu to 967.75c/bu;
  • MATIF wheat December contract down €2/t to €274/t;
  • Corn December contract up 7c/bu to 532.75c/bu;
  • Soybeans November contract up 3.75c/bu to 1231.5c/bu;
  • Winnipeg canola November contract up C$5.60 to $921.10/t;
  • MATIF rapeseed November contract up €1.25/t to €673.75/t;
  • US dollar index was up 0.1 to 94;
  • AUD firmer at US$0.743;
  • CAD firmer at $1.237;
  • EUR firmer at $1.163;
  • ASX wheat January 2022 up A$1/t to $344/t;
  • ASX wheat January 2023 up A$3/t to $360/t.

International

Markets saw Chicago +2 1/4¢, KC +5 1/4¢, Minny down a penny, and Matif off two euros on the earlier close.  Corn gained seven cents while beans were up 3 3/4¢ (Matif +1.25€, Winnipeg +$5.6).  Crude oil was also mixed with WTI trading out at $82.4 / $84.3 Brent and the DOW off 36 points.

With more concerns about defaults over debt payments due this week, the Chinese real estate debt problems are coming back into focus amid broader discussion about contagion impacts into the broader economy.

No new sales flashes were reported despite the prior rumours about additional Chinese buying from the US. Similarly, EU cash markets were a bit on the defensive despite prior rumours of French wheat sales to China.

Regular US weekly export inspections had 2.3 million tonnes (Mt) beans, 0.9Mt corn, 0.140Mt wheat and about 0.03Mt milo to Eritrea. No sales to China were executed.

Crop progress figures had corn 52 per cent (pc) harvested, beans 60pc and milo 59pc.  Plantings of winter wheat hit 70pc.  All figures were slightly below expectations.

Black Sea weather maps have taken yet another turn to the drier for Russian winter wheat areas, the latest models withdrawing that chance of end month showers along the Volga River.

South American bean plantings continue to push forward with IMEA figures for Mato Grosso at 45pc end of last week.  Private estimates in the low-50pc-range this week.  Private ideas on national progress are about 25pc planting complete.

Weather maps there remain in the 1-2″ range for almost all of the soybean belt this week.

Australia

Canola values hit A$1000/t again in WA but eastern Australian canola prices lifted only about $5/t. New crop Aussie grain markets were relatively unchanged to start the week.

We continue to sound like a broken record but the premiums for wheat are still there to the grower in those good executable sites that lead into an export pathway and we are still seeing price spreads do their thing in the market with Adelaide bids still $30/t over NSW as harvest edges closer.

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