Markets

Daily Market Wire 22 April 2021

Lachstock Consulting, April 22, 2021

Corn’s 4pc surge led grains and oilseeds prices higher.

  • Chicago wheat May contract up US13.5c/bu to 673.25c;
  • Kansas wheat May contract up 10c/bu to 630.75c;
  • Minneapolis wheat May contract up 9.5c/bu to 678.5c;
  • MATIF wheat May contract up €8.50/t to €231.50/t ;
  • Corn May contract up 19c/bu to 625.5;
  • Soybeans May contract up 25.25c/bu to 1497.25c;
  • Winnipeg canola May contract up C$14/t to $876.30;
  • MATIF rapeseed May contract up €14.25/t to €561.75/t;
  • US dollar index down 0.1 to 91.1;
  • AUD firmer at US$0.775;
  • CAD firmer at $1.249;
  • EUR unchanged at $1.203;
  • ASX wheat May contract up $6/t to $297/t;
  • ASX wheat January 2022 up $5/t to $308/t.

International

Here we go again with another new high. Corn jumped 19¢ despite looking like we might see a correction early in the session.  Beans ended up 25 1/4¢ and Matif gained 14.25€/Winnipeg +$14.  Chicago wheat closed up +13.5¢, KC up a dime, Minny +9.5¢, and Matif +8.5€ on the earlier close.  Crude oil has given up a buck and a quarter with ongoing demand concerns globally seeing WTI off to $61.4 / Brent $65.3 though the DOW was up 316 points as US markets bounced.  The AUD is holding around 77.5¢, the CAD $1.249, and the EUR $1.203.

As May futures expiry is approaching, we’ll shift futures moves quotations to the July contract at the start of next week.

The head of the US Fed has made headlines again, with the news getting hold of a letter he wrote to a US senator earlier this month discussing inflation potentials and appearing to accept higher levels for the future.

Regular weekly ethanol production was unchanged, 941k bpd. Stocks were slightly tighter, just under 20.5 million barrels.  More stock was shifting again towards the US Gulf which might suggest there could be more boats to come.

Saudi Arabia’s SAGO announced last night that they’d finalised their last flour mill sale, selling two more mills to different consortia as the government works to get out of the grain business.

Safrinha weather concerns in Brazil are back in vogue. The latest weather runs are pulling back the chances for rain on the 2-week maps, compared with flirtation the other day briefly with rain ahead. Crop ideas are continuing to trend lower.  Many market estimates have been moving into the low 100 million-tonnes-range in the last several days.

Cattle markets were off sharply with the grain rally. They’re starting to look towards the next cattle on feed figures and expecting large increases in both placements and inventory bouncing back after the Feb weather delays.

Some late demand reportedly is coming to the table in the Black Sea for old crop wheat and corn. There’s more talk of Chinese corn purchases from Ukraine again.

Frost concerns across HRW areas have mostly passed, but some more eastern SRW areas have warnings in play for tonight.

With more focus on spring wheat and canola this year, next Tuesday’s StatsCan acreage report looks to be more closely watched by markets than normal.

Australia

Local markets were much the same yesterday as previous. More bids are starting to pop up as the trade looks to cover near-term commitments amid tight logistics from fewer farmer-owned trucks on the road.

BOM maps still holding dry, and pulling back some on the chances of rain for WA in the extended run model.

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