Overview of futures markets:
Following the long weekend just gone in the US we saw grain and oilseed markets lose ground with losses across the board. Wheat markets weakened as corn followed them into negative territory. Soybeans lost over 11c on the back of weak Chinese markets and strong South American crop production ideas. Both Winnipeg and Matif canola followed suit and closed in the red as a result of the lower soy complex and a soft Canadian dollar.
- CBOT Wheat was down -6.75c to 441c,
- Kansas wheat down -1.75c to 456.25c,
- corn down -5.25c to 368.25c,
- soybeans down -11.25c to 1032.5c,
- Winnipeg canola down -$C3.599 to $C517.7,
- Matif canola down -€2.75 to €423.25.
- The Dow Jones up 4.279 to 20624.05 ,
- Crude Oil up 0.0099c to 53.37c,
- AUD up to 0.7671c,
- CAD up to 1.3098c, (AUDCAD 1.00436)
- EUR down to 1.06047c (AUDEUR 0.7233).
Bird flu concerns in China continue to spark interest around the globe which has seemingly resulted in lower protein feeding. The soy complex will remain on shaky ground until Chinese markets find strength and return to the party. The strong South American crop prospects continue to weigh on soybean futures.
There have been whispers of logistical problems in the US along with some cancellations that has opened the door for Canada to pick up some unexpected business. Egypt purchased 360k of wheat from Russia and the Ukraine at a thereabouts price of US$196 for second half of March shipment. Algeria was good for 225k of Durum from Canada whilst Morocco got their hands on 265k of wheat from unknown.
Markets were in red territory from start to finish before closing below 370c/bu to finish the week. The logistical issues in the US have filtered into the corn market which seems to have created a few headaches. Mexico are looking to ramp up their import program after suggestions that they are in discussions with Argentina in an attempt to get their hands on some Argentine corn.
We can expect a relatively dry week ahead in all cropping regions of South Australia, Victoria and NSW. There is up to 25mm on the horizon for south eastern WA. The cotton growing regions on northern NSW and southern QLD will receive no more than 5mm over the next week as we continue to see more pressure bestowed upon our dryland cotton growers after what has been a long hot two months.
Source: Lachstock Consulting