Markets

Daily Market Wire 21 December 2020

Lachstock Consulting December 21, 2020
Wheat markets moves were mixed in Friday trading, while corn, soybeans and canola posted some big gains.
  • Chicago wheat March contract down US0.5 cents per bushel to 608.25c;
  • Kansas wheat March contract down 0.75c/bu to 569.25c;
  • Minneapolis wheat March contract up 1.5c/bu to 568.5c;
  • MATIF wheat March contract up €1.50/t to €208.50;
  • Corn March contract up 5c/bu to 437.5c;
  • Soybeans March contract up 18.5c/bu to 1224c;
  • Winnipeg canola March contract up C$8.90/t to $617.40;
  • MATIF rapeseed February contract down €0.50/t to €412.50;
  • Brent crude February up US$0.76 per barrel to $52.26;
  • Dow Jones index down 124 points to 30,179;
  • AUD weaker at $0.758;
  • CAD weaker at $1.279;
  • EUR firmer at $1.222.

International

Argentine port strikes are dragging out, with continued 24-hour extensions into the weekend, and another meeting on for today (Sunday in Argentina) to determine if they continue.

Argentina’s weather forecasts remain very dry into the New Year, with the market’s worries shifting down from Brazil, where there is better moisture. Brazil’s soybean planting were pegged at just over two-thirds complete by the Bolsa late last week, with dry conditions and political concerns slowing fieldwork.

Similarly, Black Sea weather maps have almost no precipitation forecast across Russian wheat areas.  Warmer weather is forecast to follow the recent cold snap, but with the dry conditions and lack of snow cover, winter loss estimates are still doing the rounds

US conditions are also very dry, and with focus shifting towards winter wheat acreage in the January report, production ideas are moving forefront and centre.

With Christmas on Friday, markets are already starting to feel something of a holiday mood,  though keeping an eye out as lower-liquidity days can sometimes see choppy price moves.

Australia

The Aussie dollar has finally broken back under 76 cents, but continues to see fairly solid support with the dovish USD outlook.

Weekend rains on the Darling Downs have seen at least 30 millimetres across a streak of southern Queensland, but less south of the border so far.  The Bureau of Meteorology is still calling for widespread totals upwards of 20mm today and tomorrow, hopefully filling in for those that have not seen it yet.

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