Markets

Daily Market Wire 21 July 2023

Lachstock Consulting July 21, 2023

Markets mostly held on to previous day gains. US dollar index continued to gain. The Dow Jones Industrials Average has closed firmer for 9 consecutive days.

  • Chicago wheat December up US0.75 cents per bushel to 746.25c/bu;
  • Kansas wheat December up 8.25c/bu to 880.75c/bu;
  • Minneapolis wheat December up 5.75c/bu to 911.75c/bu;
  • MATIF wheat December up €1.50/t to €259.50/t;
  • Black Sea wheat December down US$1.50/t to $245/t;
  • Corn September down 8.25c/bu to 537.25c/bu;
  • Soybeans November down 4c/bu to 1404.75c/bu;
  • Winnipeg November canola contract was up C$1.30/t to$843/t;
  • MATIF rapeseed November 2023 down €3.50/t to €504.75/t;
  • ASX January 2024 wheat up A$12/t to $402/t;
  • ASX January 2024 barley up A$15/t to $318.30/t;
  • AUD dollar gained 7 points to US$0.6779

International

Further escalation occurred in the Black Sea during Russia’s third night of successive airstrikes on south Ukrainian port cities. At least 3 people are now confirmed to have been killed and more than 20 injured, as Russian forces launched 19 missiles and 19 drones overnight on Ukraine’s two biggest port cities, Odesa and Mykolaiv. Reports emerged that strikes also had caused damage to China’s consulate building located in the city centre of Odesa. 

Russia wheat flow is now also under question following the release of a statement by the Ukrainian Ministry of Defence. Ukraine have mirrored the move made by Russia, in declaring any vessels in the Black Sea headed for Russia-controlled ports as potential carriers of military cargo. 

According to Reuters, India has ordered a halt to its largest rice export category. The government of India has amended the export policy and imposed a ban on non-basmati white rice in an effort to relieve the recent rise in prices in the domestic market. India accounts for more than 40pc of world rice exports, and the category impacted accounted for around 10 million tonnes (Mt) of the total 22Mt Indian rice exports last year. 

International Grains Council (IGC) raised world grain production to 2.297 billion tonnes for the 2023/24 season, up from a June forecast of 2.292 billion tonnes. Stockpiles were raised in the report to 581Mt from 577Mt. 

AgroConsult raised the estimates of Brazil’s 22/23 second corn crop from 102.4Mt to 107.2Mt, which is seen 16pc higher than the previous year.

Australia

ASX Jan wheat settled at $402. Vic new crop barley values improved $5 to close around $332. 

New crop WA canola rose to $805 for both GM and non-GM which attracted good interest from the grower. 

New crop WA wheat was firmer, with the APW MG levels reaching $415 for Geraldton/Kwinana and around $410-412 for Esperance and Albany port zones. 

WA current crop feed barley rallied further, trading reasonable volumes at $300 FIS Kwinana/Albany and $305 FIS Esperance. 

The Eastern States were all firmer again off the back of offshore rallies but couldn’t keep up 1 for 1. Basis sharpened on all fronts. 

Some engagement emerged from sellers on all fronts as new crop reached $420 track APW1 & $765 CAN in PKE. 

The forecast is showing some positive signs for some rain relief in the back end of July. This will be much needed and well timed if it were to eventuate. 

 

Grain Central: Get our free news straight to your inbox – Click here

HAVE YOUR SAY

Your email address will not be published. Required fields are marked *

Your comment will not appear until it has been moderated.
Contributions that contravene our Comments Policy will not be published.

Comments

Get Grain Central's news headlines emailed to you -
FREE!