Grains settled lower and canola higher.
- Chicago wheat December contract down 6 cents per bushel to 466.5
- Kansas wheat December contract down 4.75c to 402c,
- Minneapolis wheat December contract down 1c to 516c,
- MATIF wheat December contract down €0.75 per tonne to €170.25;
- Corn December contract down 5.75c to 368.75;
- Soybeans November contract down 1.75c to 868.25c;
- Winnipeg canola November contract up C$1.20 to C$451.40;
- MATIF rapeseed November contract up €2.25 at €380.75
- Brent crude October contract up $0.29 per barrel to $60.03
- Dow Jones down 173.35 to 25962.44;
- AUD strengthened to US$0.6775
- CAD strengthened to $1.3318
- EUR strengthened to $1.1097
In the wheat pits Chicago settled down -6 usc/bu closing at 466.5usc/bu, Kansas was -4.75 usc/bu lower to settle at 402usc/bu, while Minni softened -1 usc/bu to go out at 516usc/bu. Corn fell -5.75 usc/bu to go out at 368.75usc/bu while Beans were up 1.75 usc/bu to settle at 868.25usc/bu WCE Canola rallied 1.2 CAD/mt closing at 451.4CAD/mt.
The wheat market eased lower again with nothing new to fill the wires – the information doldrums continue to weigh on activity forcing the discretionary capital to remain firmly on the sidelines. The only real reason the global consumer would put a hand in their collective pocket is fear over what the ProFarmer tour could throw at the corn market and signs of bullish life were snuffed out by improving weather conditions. It’s hard to tweet about how bad the corn belt is when its raining. It’s one of those days where everything you read is simply bearish. The US Environmental Protection Agency (EPA) exempted 31 refineries from mandated demand under the Renewable Fuels Standard, further bearish news for corn.
Back in Aussie as the forecast dry’s up for the next 8-10days, we turn to looking at some sub soil moisture maps and parts of SNSW are currently showing average to below average. A 15-20mm event would secure these crops to get home and finish off to their potential no doubt. Markets firmed a fraction over the course of the day, driven mainly by wheat. This widened the wheat versus barley spread out to $40-45/t throughout Vic and SA. Looking north we also note the wheat versus sorghum spread is now circa $65-70/t for March/April which will force the decision for many of the endusers with the ability to switch. The north will still need to see a significant rainfall event leading up to get an optimal summer crop plant.
Source: Lachstock Consulting
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