Markets

Daily Market Wire 20 July 2021

Lachstock Consulting, July 20, 2021

Wheat markets lifted, oilseeds settled.

  • Chicago wheat September contract up US5.25c/bu to 697.75c;
  • Kansas wheat September contract up 0.75c/bu to 652.25c;
  • Minneapolis wheat September contract up 6.5c/bu to 923.75c;
  • MATIF wheat September contract unchanged at €214.25/t;
  • Corn September contract was unchanged at 556c;
  • Soybeans September contract down 3.75c/bu to 1382.75c;
  • Winnipeg canola November contract was down C$19.40/t to $898.10;
  • MATIF rapeseed August contract down €14.50/t to €533/t;
  • US dollar index up 0.1 to 92.8;
  • AUD weaker at US$0.734;
  • CAD weaker at $1.275;
  • EUR weaker at $1.179;
  • ASX wheat July contract up $5/t to A$308/t;
  • ASX wheat January 2022 up $8/t to $316/t.

International

Grain markets settled down some later in the session despite early and overnight strength – Chicago wheat up a nickle and a quarter, KC +3/4¢, Minny +6.5¢, and Matif unchanged on the earlier close.  Corn settled unchanged at 556¢ and beans gave up 23 1/4¢ (Matif -14.5€, Winnipeg -$19.4).  Crude oil has dropped sharply after the OPEC agreement, giving up some five bucks to $66.6 WTi / $68.6 Brent and the DOW collapsed 725 points (off nearly 900 mid session) as markets spook over continued coronavirus concerns.  The AUD has fallen to 73.4¢, the CAD$1.275, and the EUR $1.179 with the dxy up to 92.9

US Corn Belt weather maps are turning warmer and drier through the end of the month, with above-average temperature anomalies starting to move east.  Western areas are still looking for more rain which the maps are not showing.

US crop conditions reports had corn rated 65 per cent (pc) good-to-excellent, unchanged, beans 60pc, (+1pc), and spring wheat at 11pc (minus 5pc from week prior).  Winter wheat harvest progress was 73pc and the kicked the can down the road until next week for spring wheat harvest.

With the ongoing drought, more cash cattle are hitting the market across the western and northern US/southern Canada. Some auction yards reported 30pc+ increases in sales as cow/calf operations push up cull numbers in the face of the forage shortage there.

More frosts reported in parts of Brazil last night, with some analysts there calling for further losses on later maturing fields.  Safrinha corn was pegged at 30pc nationally harvested the other day, 52pc in Mato Grosso state.

China reporting a new case of ASF in Sichuan province, reportedly from inter-province moves, breaking quarantine rules.

US export inspections were fairly moderate last week, corn 1 million tonnes (Mt), beans 0.14Mt and wheat 0.5Mt, including a boat to China.

Australia

Local bids on both old and new crop boards had a firm start yesterday. Some grades were bid up A$5-6/t.

Canola is pushing over $800/t site for some parts of the east coast already with the board rally.

Weather maps are holding steady, with the rains still forecast for WA and a fairly widespread forecast later for southern NSW and Victoria.

 

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