Markets

Daily market wire 2 March 2017

Lachstock Consulting, March 2, 2017

Overview of futures markets:

lackstock1

Higher across the board for grains and oilseeds.  More speculation on the US government ethanol/biofuel policy helped encourage buying. New fund money flows were noted.

  • CBOT Wheat was up 10.75c to 435.5c,
  • Kansas wheat up 14.25c to 465.5c,
  • corn up 9c to 375.75c,
  • soybeans up 16.25c to 1041.25c,
  • Winnipeg canola up 16.8$C to 535.4$C,
  • Matif canola up 4.5€ to 421.25€.
  • The Dow Jones up 303.30 to 21115.55,
  • Crude Oil down -0.119c to 53.71c,
  • AUD up to 0.768c,
  • CAD up to 1.332c, (AUDCAD 1.023)
  • EUR up to 1.055c (AUDEUR 0.727).

Soybeans

The entire oilseed complex railed with soybeans and soy oil setting the pace. Brazil’s harvest is underway with reports of extremely large queues at the port where thousands of trucks are waiting to move grain into port. The logistics task will slow execution which should keep US beans in favour with Chinese buyers in the near term.

Canola

Canola had a very strong rally following the wider oilseed complex, but also supported by a weaker Canadian dollar.

Corn

Corn was supported by new money flows, with strong fund buying noted. Weekly ethanol production was unchanged week on week, but still historically high, despite rising ethanol stocks. Logistics issues in the PNW are causing ongoing export delays for corn, which has seen Japan having to dip into reserves to maintain pipeline stocks.

Wheat

Wheat followed strength in corn and oilseeds, trading higher with supportive technical. Concerns over dry weather in winter wheat areas is gaining momentum, with little forecast for March. Demand remains strong with the Egyptian purchase noted yesterday, as well as Saudi and Algerian business on the cards, which collectively should keep flat price supported. Market is expecting India to enforce a 25pc import duty on wheat soon which will put a drastic halt to Australian exports.

Australia

Some mild rainfall is forecast for NSW and QLD which will help the parched profile, but may be too late to assist summer crops. The AUD is unchanged day on day at .76 and proving resilient.

 

Source: Lachstock Consulting

 

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