Markets closed mostly higher overnight.
- Chicago wheat December contract up US1.75 cents per bushel to 627c;
- Kansas wheat December contract up 4.25c/bu to 563c;
- Minneapolis wheat December contract up 9.5c/bu to 569.25c;
- MATIF wheat December contract up €3 per tonne to €211.75;
- Corn December contract up 3.25c/bu to 405.25c;
- Soybeans November contract up 4.25c/bu to 1054.25c;
- Winnipeg canola November up C$6.10/t to $533.10;
- MATIF rapeseed November contract down €1.75/t to €388.75;
- Brent crude November contract down US$0.31 per barrel to $42.62;
- Dow Jones index down 411 points to 28,195;
- AUD weaker at $0.7063;
- CAD steady at $1.319;
- EUR stronger at $1.1768.
International
New export sales flashes from the USDA had corn at 345,000t to unknown and 123,000t of corn to Mexico. Regular weekly export inspections were fairly disappointing for wheat at 240,000t), but solid on soybeans and corn at 2.2 million tonnes (Mt) and 900,000t respectively. Corn and soybean movements were very heavily weighted towards China, and accounted for just under half of the corn, and 1.7Mt of the beans) – a reminder of the heavily concentrated demand profile thus far.Post US market closes, the latest crop progress figures were released, which pegged the corn harvest at 60-per-cent complete and soybeans at 75pc complete, both nicely ahead of average. Forecasts point to some regional delays in the US this week.
Algeria’s OAIC is back in the market for wheat, and looking for December shipment. As with the previous tender, quality profiles still look set to dissuade any Russian offers, so it will mostly be a question of how much interest there is from EU suppliers after the prior sales.The Russian Government is debating another grain intervention-type program, though this time aimed at controlling domestic flour prices by controlling costs to millers. Weather maps are still mostly dry across the Black Sea, although there is some firming in the models with better light showers forecast along the Volga, and very solid across Brazil’s soybean regions.
Australia
Harvest of early barley and wheat has progressed in the northern part of New South Wales, and some early canola has also been harvested. Expect harvest activity this week to pick up in north-west NSW cropping regions once the weather clears. Some canola crops in the south have started to lay over, weighed by a heavy canopy and added moisture from the skies. These will present some challenges once the windrowers get out into the paddocks.
Source: Lachstock Consulting
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