Markets

Daily market wire 21 March 2018

Lachstock Consulting, March 21, 2018

Overnight futures markets

US grain markets steady, oilseeds mostly up.

  • CBOT wheat up 1c to 468.75c,
  • Kansas wheat down 0.25c to 487.75c,
  • Corn down 0.75c to 382.5c,
  • Soybeans up 5.5c to 1039c,
  • Winnipeg canola up C$2.09 to $519.8,
  • Matif canola down €0.5 to €346,
  • Dow Jones up 116.36  to 24727.27,
  • Crude oil up US$1.34 to $63.4,
  • AUD down to 0.76817c,
  • CAD down to 1.30727c (AUDCAD 1.00425),
  • EUR down to 1.22422c (AUDEUR 0.6274)..  

Wheat

Following yesterday’s price capitulation, US wheat futures markets largely took a breath and steadied overnight. The timely weekend rains, which were the catalyst for the sell-off, would need to be followed by more in order to maintain any improvements in crop conditions seen over the weekend.  This would apply particularly to southern regions, including Kansas, Texas and Oklahoma.

Corn

Corn values survived a sell-off, recovering to just below unchanged at session’s end. Nearby demand for corn remained strong, having the effect of drawing down stocks in the longer term.

China’s top independent oil refiner has been buying ethanol and, according to Reuters, two others are seeking approval to blend ethanol into their gasoline, which will ultimately be supportive for corn.

Australia

Markets remain relatively quiet, with growers still largely holding on to their stocks and awaiting an autumn break in order to get their new-crop planting started.

Rain is on the 8-day forecast right down the east coast, which could provide some confidence to growers, but at this stage it doesn’t look to be enough to have any major effect.

Australian cash markets could be expected to soften slightly in response to the US sell-off, although the weaker AUD will counter this to some extent.

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