Markets

Daily Market Wire 20 January 2020

Guest Author, January 20, 2020

Corn hiked 4 per cent on Friday night.  Most other firmer by 1 or 2 per cent.

  • Chicago wheat March contract up 5.25 cents per bushel to 570.5c;
  • Kansas wheat March contract up 9.5 cents to 484.25c;
  • Minneapolis wheat March contract up 9.75c/bu to 560c;
  • MATIF wheat March contract up €1 to €194/t;
  • Corn March contract up 13.75c to 389.25c;
  • Soybeans March contract up 5.75c to 929.75c;
  • Winnipeg canola March contract up C$5/t to $481/t;
  • MATIF rapeseed February contract up €3.25/t to €407.5/t;
  • Brent crude February contract up $0.30c per barrel to $64.90 per barrel;
  • Dow Jones index up 51 points to 29348 points;
  • AUD weaker at $0.6870;
  • CAD weaker at $1.306;
  • EUR weaker at $1.109.

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Grains bounced with corn lead 4 per cent higher on Friday after rumours about possible Chinese purchases of US corn cargoes. We haven’t seen any confirmation that it was Chinese demand, though apparently several boats were sold to someone.

Chicago wheat ended up 5 1/4¢ to 570.5¢, KC +9.5¢ to 494.25¢, Minny +9.75¢ to 560¢, and Matif was up a euro on the earlier close to 194€.  Corn ended up 13 3/4¢ to 389 1/4¢ and beans were up 5 3/4¢ to 929 3/4¢ (Winnipeg +$5 to $481, Matif +3.25€ to 407.5€).  Crude oil was up a few cents (more off the overnight lows) to settle at $58.5/$64.9 Brent and the DOW ended up 51 points.  The AUD’s trading around 68.7¢, the CAD$1.306, and the EUR $1.109.

Please note that US markets are closed today for the public holiday on Monday there and will open on Monday evening for the night session there, Tuesday day in Australia.

Despite the rumours on Friday, there’s still a lot of uncertainty to be had on the US/China trade deal, both the mechanics and the extent to which it will be implemented.

Beans in particular remain a concern. Even though rains in Brazil this week may bring some delays to early soybean harvest, though boosting soil moisture for a safrinha crop, Brazilian beans are still far cheaper into China than US beans and more reports on cargoes sold last week ex Brazil have trickled on in.  Minister of Agriculture and Rural Affairs in China, Han Changfu, said he expected bean imports to recover some this year, after last year’s drop, but as always there’s a range of ideas about where that may end up and mixed ideas about how big was the impact of ASF in last year’s slowdown.

Commitment of Traders report released on Friday saw no big surprises and only nominal changes, slightly longer on most ags and shorter on meal, but bear in mind this is as of the 14th, prior to the trade deal being signed.

Australia

Back locally, scattered showers are set to continue through the week across the east coast, but nothing that looks to be widespread or to bring much accumulation.

Longer term maps continue to flirt with a second storm system coming across from WA next week, but that’s still a long way out.

Markets did pull back into the end of last week with the rain, but still trying to sort out exactly how much value there was to be had from it.

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