Daily Market Wire 20 September 2019

Lachstock Consulting September 20, 2019
Futures settlements were mixed overnight.
  • Chicago wheat December contract down 1.5 cents per bushel to 488c;
  • Kansas wheat December contract down 0.25c to 409.5c;
  • Minneapolis wheat December contract up 7c to 520.25c;
  • MATIF wheat December contract down €0.25 per tonne to €171.25;
  • Corn December contract up 1.5c to 372.75c;
  • Soybeans November contract up 4.25c to 893c;
  • Winnipeg canola November contract down C$1.40 to $450.90;
  • MATIF rapeseed November contract up €2.25 to €387;
  • Brent crude December contract down $0.95 per barrel to $63.60;
  • Dow Jones index down 52.29 points to 27,094.79 points;
  • AUD weakened to US$0.6787;
  • CAD strengthened to $1.3263;
  • EUR strengthened to $1.1052;

Markets and trade

In the wheat pits Chicago settled down -1.5 usc/bu closing at 488usc/bu, Kansas was -0.5 usc/bu lower to settle at 409.5usc/bu, while Minni rallied 7 usc/bu to go out at 520.25usc/bu. Corn gained 1.5 usc/bu to go out at 372.75usc/bu while Beans were up 4.25 usc/bu to settle at 893usc/bu WCE Canola softened -1.4 CAD/mt closing at 450.9CAD/mt with Matif Canola finishing higher by 2.25 Eur/mt. In outside markets the Dow Jones fell -42.08 points, Crude was up 0.5 bbl the Aussie was -0.003171 lower to settle at 0.67952, the CAD softened -0.0028 while the EUR gained 0.0015.

US and Chinese officials will meet in the US to set the scene for high level trade talks that will take place in October, an exact date is yet to be confirmed. While US Agriculture Department Secretary Sonny Perdue said that Chinese officials will visit American farms next week as part of efforts to build relationships and goodwill. Commerce Secretary Wilbur Ross said the US and China need to correct the big imbalances, not just the current trade deficit. He reiterated the Trump administration is pressing for a deal that commits Beijing to a wide range of economic reforms. Investors remain sitting on the fence about any near term resolution of the current trade war.
Oil prices continued to firm on concerns that the market will remain tight and Middle East tensions remain high. Other commodities were mixed, while spot gold firmed to US$1500/oz, iron ore was weaker by 3.3pc finishing at US$93.20/t.


Locally in Aussie yesterday, weaker than expected jobs data report has raised expectations for another rate cut by the RBA which was announced to take place next month, therefore pushing the AUD back below US68c. Back in Aussie, markets held ground yesterday across the boards, however trade offers pushed higher in the market AUD$4-6. Feed grains up, Downs finish the week stronger up $8-10. Talks about production uncertainty continue. SA and Vic gearing up for a rain event which will come at the right time with crops hanging in there and potential yield to be secured with a 10-15mm event. WA still remains dry on most weather models which will add continual stress to struggling crops.



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