Overview of futures markets

Grains and oilseeds futures markets were higher overnight.  Rumours of new fund order flow were the catalyst overnight for grains and oilseeds, with charts defying some negative technical sentiment.

• CBOT Wheat was up 13c to 433.75c
• Kansas wheat up 11c to 440.5c
• Corn up 8.5c to 368.25c
• Soybeans up 12.25c to 1036.75c
• Winnipeg canola up 4.60$C to 512.1$C
• Matif canola up 2.5€ to 412€
• Dow Jones up 26.849 to 19890.94
• Crude Oil up 0.739 to 53.55c
• AUD up to 0.7586c
• CAD down to 1.30c, (AUDCAD 0.989)
• EUR up to 1.07c (AUDEUR 0.7042).

Soybeans

Soybeans were stronger on anticipation of Chinese buying when they return from New Year’s Eve. Forecast rain is raising concerns for Argentina but the market is also considering positive bean yields.

Canola

Canola rallied with soybeans and a softer Canadian dollar.

Corn

Corn came to the party, rallying 8 cents on rumoured new money flows. The fundamentals remain the same, burdensome supply in spite of positive demand, corn is a follower of beans at present.

Wheat

Wheat was stronger as SRW caught a bid with short covering and bull spreading.

In spite of burdensome supply, the market is cautious of a new crop supply issue.  A lot of volume traded today in wheat with the March contract trading 97,000 contracts.

Algeria was rumoured to have traded $205 for hard wheat, which is below current Kansas hard wheat replacement.  Matif futures were stronger as speculators pencilled in French hard wheat, which was unexpected given their quality profile.

Australia:

Extremely hot conditions are forecast for NNSW and Southern Queensland which will have an impact on an already moisture starved summer crop.

Source: Lachstock Consulting