Markets

Daily Market Wire 21 October 2021

Lachstock Consulting, October 21, 2021

Grains and oilseeds rallied across the board with wheat leading the way.

  • Chicago wheat December contract up US13.25c/bu to 749.25c/bu;
  • Kansas wheat December contract up 11.5c/bu to 759.75c/bu;
  • Minneapolis wheat December up 15.5c/bu to 989.75c/bu;
  • MATIF wheat December contract up €4.50/t to €278.25/t;
  • Corn December contract up 9c/bu to 539.25c/bu;
  • Soybeans November contract up 17.5c/bu to 1245.5c/bu;
  • Winnipeg canola November contract up C$11.5 to $949.30/t;
  • MATIF rapeseed November contract up €9/t to €698.25/t;
  • US dollar index was down 0.2 to 93.6;
  • AUD firmer at US$0.753;
  • CAD firmer at $1.232;
  • EUR firmer at $1.166;
  • ASX wheat January 2022 down A$3/t to $342/t;
  • ASX wheat January 2023 down A$5/t to $358/t.

International

US row crop harvest pushing along rapidly in the eastern corn belt, but 2-3″-range rains forecast for early this weekend are set to stall fieldwork again.

No more export sales flashes were reported overnight though markets are looking for strength in the weekly bean sales report tonight given the previous flashes and rumoured Chinese buying.

The Mexican Ag Minister reassured markets last night they would not be restricting US corn imports over GM crops.

The sale of Russian wheat to Algeria is making headlines again. Three boats sailed in September and the trading arm of Russian bank VTB has now pushed the story to the news. The third cargo was shipped by Viterra/Glencore.

Restrictions by Chinese authorities on fertilizer exports were reiterated by government officials, commenting that the focus was on ensuring domestic supply availability.

Regular US ethanol production, at 1.096 million bpd, had increased to a many-week high. Stocks, at 20.1 million barrels, had also increased.

The USDA attaché in Brazil pegged new season bean production at 145 million tonnes (Mt) Mt, up 1Mt from the USDA’s official Oct figure and suggesting a continued expansion of acres.

More dust storms have brought some planting delays and logistical delays across parts of the southern Brazilian soybean areas but, with moisture on the way, planting is still pushing ahead.  Latest run maps still forecast a widespread inch to come in the next few days.

Australia

Despite higher international prices, US wheat and Russian cash firming, Aussie wheat values remain subdued. Australian markets were relatively unchanged yesterday. The Australian dollar is stronger, there is more activity in grower selling and we are on the cusp of harvest gut slot.

Canola markets firmed by $5-10/t in WA while east coast values were unchanged-to-a-couple-of-bucks softer in some zones. Upcountry domestic trade bid/offer spreads in wheat and barley markets continued to be left wide apart.

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