Markets

Daily Market Wire 22 November 2019

Lachstock Consulting, November 22, 2019

Grain and oilseed futures settled mostly lower.

  • Chicago wheat December contract down 6.5 cents per bushel to 509c;
  • Kansas wheat December contract down 5c to 421c;
  • Minneapolis wheat December contract down 6c to 495.25c;
  • MATIF wheat December contract down €0.75 to €179.25 per tonne;
  • Corn December contract up 1.75c to 368.5c;
  • Soybeans January contract down 4c to 901c;
  • Winnipeg canola January contract down C$3.30 to C$463.20 per tonne;
  • MATIF rapeseed February contract down €1.75 to €390/t;
  • Brent crude January contract up US$1.57 to $63.97 per barrel;
  • Dow Jones index down 54.80 to 27766.29 points;
  • AUD weaker at  $0.6790;
  • CAD stronger at $1.3275;
  • EUR weaker at $1.1062.

In market news overnight;

  • Wheat futures sold lower despite US weekly wheat export sales a healthy 437,000t
  • Argentina getting rain but arguably too late for its wheat crop
  • Harvest delays continue in Australia

In spite of a decent round of export sales the wheat market found a wave of selling.

The US sold 437,000t – up 29pc over the four-week average and well ahead of the pace needed to make the USDA export estimate.

It’s an interesting print given the relative strength of both the futures market and US domestic cash markets.

It will be interesting to see if the train strike in Canada will have any impact on US exports.

Algeria is playing the game indicating they will be only looking for 4Mt vs their usual 6Mt – okay – not sure the wider markets buys this but we will see.

Tonight is the December options expiry which has historically been a big one.

These are the days of our lives…or trade negotiations – either way, each update brings a different twist.

This week has been a step back with increased speculation suggesting the “Phase 1” agreement will be pushed back into the new year.

Reports overnight that Chinese Vice Premier Liu has invited the US trade delegation to China for another round of face-to-face.

Seems the US has rolled a bunch of items into the deal, not just Ags.

The next tariff hike is due in December so the clock is ticking.

Australia

Local weather conditions continue to cause delays on the harvest front with a large part of the east coast declared as fire ban days, growers through Victoria and southern New South Wales endured hot windy conditions and very little action.

Markets were relatively unchanged yesterday, with trade to trade wheat track markets stuck with wide bid/offer spreads.

The Australian dollar is lower this morning as harvest kicks back into gear the early cash board numbers suggest wheat market will be relatively unchanged.

 

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