Markets

Daily market wire 23 Feb 2017

Lachstock Consulting, February 23, 2017

 Overview of futures markets:

lackstock1

Mixed for grains and oilseeds.

  • CBOT Wheat was up 5.25c to 441.25c,
  • Kansas wheat up 5.5c to 457.75c,
  • corn up 1.75c to 371c,
  • soybeans down -3.5c to 1022.75c,
  • Winnipeg canola up 1.59$C to 518.3$C,
  • Matif canola down -2.25€ to 416.25€.
  • The Dow Jones up 32.59 to 20775.6,
  • Crude Oil down -0.390c to 53.94c,
  • AUD up to 0.7702c,
  • CAD up to 1.315c, (AUDCAD 1.013)
  • EUR up to 1.055c (AUDEUR 0.729).

Soybeans and canola

Soybeans lower due to increasing yield reports out of Brazil and Argentina. Chinese buying interest remains limited, as bird flu concerns have reduced meal demand and left crush margins in decline. This is causing some fund liquidation which is adding price pressure.
Canola marginally higher defying soybean weakness in a fairly quiet session, the recent sell off has seen limited cash market activity in Canada.

Corn

Corn just managed a higher close, as a South Korean purchase renewed export demand ideas. The concerns over a policy shift away from ethanol support have reduced slightly based on recent Trump administration comments. Fund buying has eased as contrary opinions over new crop acres are discussed. USDA is expected to show a reduction in acres, though the market expecting the reality will not be the same.

Wheat

Wheat stronger as grower intentions suggest lower spring wheat acres, which combined with winter wheat planting forecasts, suggest a significant drop in new season production. In addition to this a cold temperature snap for HRW areas looks probable and also contributed to buying. Egypt purchased 360,000t from Russia and the Ukraine which combined with recent Middle Eastern and African demand suggests reasonable demand at current levels.

Australia

AUD is over 77 cents again which will restrict local pricing.  From a weather perspective there is nothing major in the nearby forecast.

 

Source: Lachstock Consulting

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