Lower for grains and mixed for oilseeds.
- CBOT Wheat was down -12.75c to 406.25c,
- Kansas wheat down -14c to 402.75c,
- corn down -4c to 357.75c,
- soybeans down -3.5c to 946.75c,
- Winnipeg canola up 3.10$C to 519.6$C,
- Matif canola up 2.5€ to 397.75€.
- The Dow Jones up 174.21 to 20578.71,
- Crude Oil down -0.16c to 50.27c,
- AUD up to 0.752c, CAD down to 1.346c, (AUDCAD 1.013)
- EUR up to 1.071c (AUDEUR 0.702).
Wheat was slammed by technical selling, with the shorts denying some global weather concerns. There was no major fundamental catalyst for today’s sell off, just a fund community willing to keep selling until a known problem forces them to cover. At present all we have is mild weather concerns and a large carryout to fall back on. Weekly export sales were better than expected at 414,000t.
Corn was lead lower by wheat and the expectations of a dryer forecast enabling planting progress to catch up next week. Export sales were in line with market expectations. The size of the South American crop is starting to have an impact with reports of corn being exported from Paraguay to the East Coast of the US. Chatter of the trade dispute between the US and Mexico is ongoing with Mexico expecting to have a trade deal announced with Argentina by the end of 2017.
Soybeans could not follow stronger bean oil, closing lower with limited fundamental catalysts. The market continues to focus on the same relevant stories, South American crops are huge, US acres are increasing and demand is not strong at present. Though the demand profile should change in July when Chinese VAT reductions come into play.
Canola continued its impressive run supported by strong bean and palm oil. Frost in Europe has potential to damage portions of the crop, while rain in the Canadian prairies continues to raise concerns for planting access.
The weather forecast has improved in Vic and NSW, which will be welcome by farmers gearing up for planting. The dollar has pushed slightly higher and the combination of weaker futures and improved planting conditions, could see prices fall as grower liquidity increases.
Source: Lachstock Consulting