Markets

Daily Market Wire 20 October 2021

Lachstock Consulting, October 20, 2021

European rapeseed lifted 2pc overnight and a firmer oilseeds complex.  Grains mostly weakened.

  • Chicago wheat December contract down US0.25c/bu to 736c/bu;
  • Kansas wheat December contract down 0.75c/bu to 748.25c/bu;
  • Minneapolis wheat December up 6.5c/bu to 974.25c/bu;
  • MATIF wheat December contract down €0.25/t to €273.25/t;
  • Corn December contract down 2.5c/bu to 530.25c/bu;
  • Soybeans November contract up 6.5c/bu to 1228c/bu;
  • Winnipeg canola November contract up C$16.70 to $937.80/t;
  • MATIF rapeseed November contract up €15.50/t to €689.25/t;
  • US dollar index was down 0.2 to 93.8;
  • AUD firmer at US$0.747;
  • CAD firmer at $1.235;
  • EUR firmer at $1.164;
  • ASX wheat January 2022 up A$1/t to $345/t;
  • ASX wheat January 2023 up A$3/t to $363/t.

International

Mixed and quiet markets continued last night, as Chicago closed off a quarter cent, KC -3/4¢, Minny +6.5¢, and Matif -0.25€ on the earlier close. Corn dropped two and a half cents and beans gained back 6.5¢ (Matif +15.5€, Winnipeg +$16.7).  Crude markets have firmed a bit over half a buck to $82.9 WTI / $85.1 Brent and the DOW gained 199 points.  The AUD is trading at 74.7¢, the CAD $1.236, and the eur $1.163 with the dxy at 93.7.

China’s real estate drama continues. Coal problems are also back in China’s headlines.  There were large swings in futures yesterday. Markets spiked to new highs before collapsing on talk of price cuts.

Political concerns in Brazil amid Senate talk of attempts to charge the President with various crimes, and of a potential coup.

A US private forecaster pegged new crop corn planted area down 1 million acres from previous year and soybean area up 4.1 million acres implying increased double cropping.

Current crop yield forecasts are trending higher, witness to good harvest results continuing. Plenty of bears starting to emerge from the woodwork.

Turkey’s TMO is tendering to buy 235,000t feed barley.

Egypt’s GASC announced that they would no longer pay a premium for NNC (National Navigation Company owned by the Egyptian government) freight.  Operating in tandem with wheat purchase tenders GASC had been applying a 15pc discount to freight offers it received through NNC, as a subsidy, helping to keep NNC competitive.

Elsewhere around the world it is wait and see. Final levels of row crop yields are still being determined along with growing confidence in USDA numbers. Winter wheat planting is pushing along without major hiccoughs globally, and new crop harvest is many months away.

Extended run weather maps have turned wetter again for early November for both the Russian winter wheat belt and the US Corn Belt, adding chances of an inch or so of rain for most of both areas.

Australia

Harvest is starting to pick up pace but still early days, and cash markets are continuing to chop along lightly as we look towards larger volumes moving with guidance from the overseas price moves.

Weather maps remaining fairly dry into early November, with no more moisture on the latest runs.

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