Markets

Daily Market Wire 23 December 2020

Lachstock Consulting, December 23, 2020
Commodities firmed overnight and the US dollar index firmed to 90.6
  • Chicago wheat March contract up US5.75 cents per bushel to 617c;
  • Kansas wheat March contract up 4.75c/bu to 579.25c;
  • Minneapolis wheat March contract up 1.25c/bu to 571.5c;
  • MATIF wheat March contract up €1/t to €209;
  • Corn March contract up 3.5c/bu to 443.5c;
  • Soybeans March contract up 2.5c/bu to 1250c;
  • Winnipeg canola March contract up C$2.30/t to $628.10;
  • MATIF rapeseed February contract up €2/t to €414.75;
  • Brent crude February down US$0.83 per barrel to $50.08;
  • Dow Jones index down 200 points to 30,016;
  • AUD weaker at $0.753;
  • CAD weaker at $1.291;
  • EUR weaker at $1.216.

International

  • The stimulus bill in the US still has yet to be signed by President Trump. Despite apparent delays on the logistics of actually sending the formal copy to him, markets are expecting his signature without any complaints
  • American Petroleum Institute crude stocks figures surprised markets last night with stocks up 2.7 million barrels, contrary to ideas stocks could drop up to 3 million.  Weak demand remains the name of the game in oil right now, and gasoline in particular has seen heavy stocks and flow back into ethanol markets
  • Energy Information Agency data will be out tonight, with ideas about production cuts potentially beginning to work through, though the last few weeks of figures have shown nothing in that direction
  • Ag markets have been quieting down with the lead into Christmas and we note that Thursday is also a federal holiday in the US, though CBOT will be open for a part day. Export sales data are due out tomorrow there, a day early, on account of the holiday
  • China’s COFCO made statements to the news the other day that they are expecting a 100 million tonnes bean import program there
  • South American crop ideas continue to float around, with various estimates about just how much stress has impacted the soybean crops. Most of the worry has shifted heavily to Argentina, although many are hedging their concerns a little after some showers late in the weekend.
  • The Argentine port and crush strikes continue. A new vote is being held today, but no indications of any resolution yet
  • Black Sea weather maps are largely unchanged, and cash markets are quieting down there as they look to the extended holiday window; global markets shut for Christmas/New Year, and holidays for celebration of Orthodox Christmas will follow.
Australia
  • Rains in northern NSW came in well above forecasts, with 50+ mm in a large amount of country near Tamworth.  Forecasts are still calling for some more coastal showers into early next week there, but otherwise the system is past.
  • Domestic markets have seen a little support from the global moves, but currently it’s all about execution and interior logistics on the east coast.
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