Daily Market Wire 23 February 2021

Lachstock Consulting February 23, 2021

Futures strengthened and the US dollar dropped sharply.

  • Chicago wheat May contract up 14.25c/bu to 669.75;
  • Kansas wheat May contract up 12.75c/bu to 651;
  • Minneapolis wheat May contract up 9.75c/bu to 649.75;
  • MATIF wheat May contract up €2/t to €229.25/t;
  • Corn May contract up 8.75c/bu to 550.5;
  • Soybeans May contract up 7.5c/bu to 1387.5;
  • Winnipeg canola May contract up C$17.70/t to $753.20;
  • MATIF rapeseed May contract down €0.50/t to €461;
  • US dollar index down 0.3 to 90
  • AUD firmer at $0.793;
  • CAD firmer at $1.259;
  • EUR firmer at $1.217;
  • ASX wheat March contract down $5.20/t to 293.80;
  • ASX wheat January 2021 contract down $5/t to 302.50.


Crude oil jumped two bucks and the DOW lifted 138 points as the US dollar dropped sharply. Wheat was also aided by talk of private Saudi wheat purchases spurring some demand optimism. Rapeseed had Matif off half a Euro but Winnipeg’s canola squeeze has continued,  the May contract lifting C$17.70/t.

The new US stimulus bill, and all the added non-stimulus items, continues to push forward through the legislative process. It’s expected later this week to pass through the House before heading to the Senate.

The European Central Bank president made comments to the effect that the bank would take further action if needed to keep longer term yield curves down, worrying that any yield rise could impede the economic recovery

Saudi Arabia’s SAGO brought some optimism to wheat markets after the announcement that they’d made non-tender purchases of 355,000t of wheat.  Worth noting though that these private purchases are in part a subsidy program to support Saudi owned farms around the world.  SAGO is still expected back in the market.

Regular US export inspections were largely as expected with 1.2 million tonnes (Mt) corn, 0.7 Mt beans, and 325,000t of wheat.  Milo to China was reported as 123,000t.

Still no new sales flashes in the US, although there’s been more Chinese buying interest for beans reported again in Brazil and for corn in Ukraine

Brazilian soybean harvest (and Safrinha planting) continues to gradually move along. Estimates the other day were about 15pc harvested nationally on beans, half of normal pace.

There’s a bit more moisture adding onto the next week weather maps for Argentine corn/bean areas, bringing some improvement on outlooks there

It’s always tricky to interpret Chinese politics (and the impacts of the political decisions there) with any degree of confidence, but many have taken notice of the new “#1 Document” released the other day and it’s focus on improving food security by driving higher domestic crop yields.


A quiet start to the week locally with the stronger A$ putting some pressure on wheat markets (off $4-5/t yesterday in places on the east coast) although some stronger demand has remained for prompt delivered offers.

Export programs continue to push along across the country, with both the larger ports and the newer ports/mobile loaders fully at work.

Barley varieties Maximus CL, Alestar, and Leabrook have been approved for malt grading.

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