Markets

Daily Market Wire 20 February 2019

Lachstock Consulting, February 20, 2019

Futures markets were all red across the board with wheat taking the biggest hit.

  • CBOT wheat was down -14.5c to 489.75c
  • Kansas wheat was down -15.75c to 460.75c,
  • Corn was down -5c to 369.75c
  • Soybeans down -6.75c to 900.75c
  • MATIF wheat was down 0.8pc to €194
  • MATIF corn down 0.4 per cent to €172.25 edit this
  • Winnipeg canola was unchanged at C$475.80 edit this,
  • MATIF canola was unchanged at €363.25
  • Dow Jones was up 8.07 to 25891.32
  • Crude oil down to $55.98,
  • AUD up to US0.7163c,
  • CAD unchanged at US1.32, (AUDCAD 0.95)
  • EUR up to US1.1339 (AUDEUR 0.63).

Wheat

Wheat got smashed with a -14.5c/bu loss after a day off from the long weekend. Instead of a single incident that saw the market collapse, there are numerous factors at play that are weighing down any signs of potential upside. There were moments of significant volume just below the 500c/bu mark that dissipated as offers arrived towards the close. Russian markets lost another 50c/t since Friday and now sit at $237.50/t fob. Wheat inspections were below expectations and remain 10 per cent behind last year. The market (and everyone else) is bored with the talk around the US and China trade talks that are looking “likely” to happen at some stage in March. All of the above is weighing down on an already burdensome market.

Corn

Corn lost ground of 5c/bu as we saw CH (March CME corn) reach lows of 370c/bu for the first time this year. Although acres are still expected to increase, the main talking point unfortunately remains around the trade negotiations. If there are any noteworthy purchases of US corn it would go a long way into eating away at the current balance sheet. The weekly inspections reached 941,800t which is equal to market expectations and is currently 45pc ahead of last year.

Soybeans

The bean market closed -6.75c/bu lower overnight with the main story surrounding Asian Swine Flu and the fact that more cases have been found in China. There have been suggestions that it has spread to Canadian feed which brought about doubt into last night’s session. Inspections reached expectations at 1.03Mt yet remain 36pc behind last year’s pace.

Australia

Domestically we are seeing much of the same with east coast markets remaining flat-to-soft. There seems to be signs of life in the canola market but is yet to filter its way across. The upcoming 8-day forecast has cropping areas of NSW and QLD set for between 5-10mm with all other cropping regions expecting a dry week.

 

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