Grain markets were steady to higher in Friday trading, with oilseed markets closing higher.
- CBOT wheat unchanged,
- Kansas wheat up 2 cents per bushel,
- Minneapolis wheat up 2c,
- MATIF wheat unchanged,
- Corn up 1.5c,
- Soybeans up 9c,
- MATIF rapeseed up €1 per tonne,
- Winnipeg canola up C$1/t.
- Dow Jones up 336 points,
- West Texas crude up to US$53.80 per barrel.
- AUD eased slightly to 71.6¢,
- CAD to $1.326,
- EUR to $1.136,
Russian export restrictions are making new headlines, with proposals to implement an export-license system apparently on the table. Winter conditions in Russia remain supportive to the new-season outlook, with hardly a concern on winter-kill to be found, despite this being the normal time for winter-kill stories to make the rounds. There are more concerns in the US, with a cold snap across part of the Midwest and southern plains, but ground reports are not yet showing any significant impact.
People are apparently optimistic on China/US talks, though at the same time news headlines are pointing that the US is calling for regular confirmation checks that the Chinese are following through on any promises. Rumors which started a few weeks ago persist, saying China is in the market for US wheat. Chinese state-owned entities do have several million tonnes worth of tariff-rate quotas (TRQ) that could be utilised at its government’s desire, but privates business is risky in light of the politics, and expensive if they do it outside TRQ. It seems China has recently bought more soybeans, and is inquiring on corn.
Rain across parts of northern NSW of around 5-10 millimetres, and more in places, last week will help some later-planted sorghum crops, but barely a drop fell in Queensland, and no rain is forecast for summer-cropping areas this week. This means stress will increase on summer crops, with dryland cotton and later sorghum feeling the heat.
Source: Lachstock Consulting