Overnight futures markets:
Mixed for grains and lower for oilseeds.
- CBOT wheat was down -5.25c to 422c,
- Kansas wheat down -6c to 416c,
- corn up 2c to 345c,
- Soybean down -0.25c to 1001.25c,
- Winnipeg Canola down -3.10$C to 524.1$C,
- Matif canola down -3.5€ to 375.25€.
- The Dow Jones up 92.10 to 23450.35,
- Crude Oil down -0.459c to 56.09c,
- AUD down to 0.754c,
- CAD up to 1.280c, (AUDCAD 0.966)
- EUR down to 1.173c (AUDEUR 0.643).
Order flow, or lack of it, was the catalyst for today’s declines in wheat. The late rally last week, saw a reasonable amount of short covering, which helped to prevent further buying. A stronger USD also added to the sour note, discouraging wheat bids. On top of this, wheat looks to be being laid off against bean and corn length, which may see it, push to oversold territory. Russian cash prices stable at $193 FOB FOR 12.5%. Implied vol in Dec SRW went out at 16.96%. Its hard to see anything fundamental impacting wheat in the near future, though Dec deliveries will be interesting to watch particularly in Kansas futures.
Soybeans were basically unchanged, after some early selling pressure. Exports came in at 2.1mmt, which was at market expectations, but not enough to excite a bid. Soymeal was down $1/tonne while soy oil was down 43 points. South American weather is not posing any immediate threats, which discouraged any active buying today.
Canola came under pressure from weakness in veg oil markets. The Indian government raised their palm oil import tax to 30%, which saw palm futures tumble, spilling over into other oilseed markets.
Source: Lachstock Consulting