All green across the board as markets finally stand strong.
- CBOT Wheat was up 5.75c to 486.5c
- Kansas wheat up 5.25c to 455.25c
- Corn up 4.75c to 375.5c
- Soybeans up 8.5c to 911c,,
- Winnipeg canola up C$3.90 to $474.80,
- MATIF canola up €1.75 to €361.75
- Dow Jones down -103.81 to 25850.63
- Crude oil down -0.32c to 56.84c,
- AUD down to 0.70915c,,
- CAD down to 1.32331c, (AUDCAD 0.93839)
- EUR down to 1.1334c (AUDEUR 0.6257).
Wheat markets finally showed some strength overnight with a 5.75c/bu increase. The overnight strength came on the back of two reasons. Reason 1 – China stated that they will purchase $30 billion in US Ags. If this is an accurate figure then the rally should have been considerably higher. At least the market got positive signs of improvement. The traditional purchase range from China is somewhere between $20-25 billion which suggests that this updated number would change to outlook considerably. Obviously there is a lot of water to go under the bridge and we are relying on Trump and Xi to tick the necessary boxes. The March timeframe remains. Reason 2 – The market can only get flogged for so long.
Corn picked up 4.75c/bu overnight with the market still satisfied enough with the fact that Trump specifically mentioned the commodity. Current ethanol stocks are at 23.9mil with a weekly figure of 996,000. Spot margins are gaining momentum as they are back into -2c from -15c last week.
Like corn and wheat, the bean market is also relying heavily on the outcome of the trade deal. The market is expecting bean sales in the range of 6-9mil tomorrow. With upcoming bean acres pegged at 85 mil the expected average 19/20 price sits at $8.80/bu.
Domestically we are seeing much of the same with markets continuing to struggle with a lack of liquidity in the south. Some of this weakness can be attributed to global factors so growers are sitting back in hope/anticipation of a rally. Qld is the only recipient forecast to receive any rainfall of note over the upcoming eight days with between 5-15mm expected to fall inland.
Source: Lachstock Consulting