Monday’s grain and oilseeds markets were weaker.
- Chicago wheat December contract down 5 cents per bushel to 472.5
- Kansas wheat December contract down 2.75c to 406.75c,
- Minneapolis wheat December contract down 1.5c to 517c,
- MATIF wheat December contract down €2 per tonne to €171;
- Corn December contract down 6.25c to 374.5;
- Soybeans November contract down 13.25c to 866.5c;
- Winnipeg canola November contract down C$2.20 to C$450.20;
- MATIF rapeseed November contract down €3.50 at €378.50
- Brent crude October contract up $1.10 per barrel to $59.74
- Dow Jones up 249.78 to 26135.79;
- AUD weakened to US$0.6759
- CAD weakened to $1.3326
- EUR weakened to $1.1085
In the wheat pits Chicago settled down -5 usc/bu closing at 472.5usc/bu, Kansas was -2.75 usc/bu lower to settle at 406.75usc/bu, while Minni softened -1.5 usc/bu to go out at 517usc/bu. Corn fell -6.25 usc/bu to go out at 374.5usc/bu while Beans were down -13.25 usc/bu to settle at 866.5usc/bu WCE Canola softened -2.2 CAD/mt closing at 450.2CAD/mt. The Aussie was -0.00129 lower to settle at 0.67634, the CAD rallied 0.0058 while the EUR fell -0.0012
Markets very quiet overnight with little in the way of fresh news to spur them either way. Wheat, corn and beans all leaked lower ahead of the weekly crop condition and progress reports. After the close corn and beans good-to-excellent ratings fell by 1 point – the trade was looking for unchanged so this will offset the fact that the weekend rainfall was better then expected. It’s a tough time of the year from an information perspective – northern hemisphere is done and southern is a few months away so US corn and beans seems to dominate the headlines. Trade negotiations are still continuing with both sides saying the other side is being more negatively impacted. It would have been interesting to see how these negotiations would have transpired if there wasn’t African Swine Fever. Depending on who you listed to the Chinese hog heard is down between 30-40pc – even with some incremental offset in the poultry industry its still going to have a negative impact on absolute feed demand.
Back in Aussie, the forecast maps drop away across the board, still light showers throughout the week for Vic. Yesterday the grains industry saw a step forward for South Australia with the State Government decision to lift genetically-modified food crops, farmers will now have wider access to choose a crop that best suits their farming operation. We continue to touch on the northern feed demand with the latest cattle numbers on feed were released at over 1,147,393 head. Markets felt a touch firmer in SA and Vci ranging from up $2-3/t on cereals and canola still gaining momentum.
Source: Lachstock Consulting
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