Futures closed mixed on Tuesday night.
- Chicago wheat December contract down 5.5 cents per bushel to 518c;
- Kansas wheat December contract down 4.25c to 421.25c;
- Minneapolis wheat December contract up 1.25c to 539c;
- MATIF wheat December contract up €0.25 per tonne to €181;
- Corn December contract up 0.75c to 388c;
- Soybeans November contract up 0.75c to 934c;
- Winnipeg canola January contract up C$2.10 to $462.10
- MATIF rapeseed February contract up €0.75 to €376.75;
- Brent crude December contract up 74c to $59.70;
- Dow Jones index down 39.54 points to 26788.10 points;
- AUD weakened to US$0.6854;
- CAD weakened to $1.3094;
- EUR weakened to $1.1128;
Wheat values rallied in overnight trading, and then gave way to finish down. Along with MATIF, which is up €15/t since the start of September, Russian cash markets remain strong. It seems that the longs in world markets are the growers as well.
The soybean market is interesting, and getting a lot of attention, with the market trading a tad higher overnight. The bulls in the market are closely watching weather and the balance sheet. On the other hand, funds are long, and only time will tell where this market goes. There has also been talk that China is going to grant an extra 10-million-tonne tariff-rate quota, which will also see support for beans, but we can’t count the chickens before they hatch.
Plenty of traders are short corn on the outright, but the market is not seeing an increase in US demand. It will come down to production risk to give the market some life, and the next USDA report will provide some clarity.
Aussie markets were again softer yesterday, with the Australian Stock Exchange’s Jan wheat contract settling at $348/t, and barley at $278/t. Wheat and barley grower bids have also lost ground over the week, and are so far down $2-$3/t across the country on minimal grower selling. Canola pushed lower by another $5-$7/t yesterday. The forecast remains dry and clear, which will allow harvest to truck on, while later areas would love another rain.
Source: Lachstock Consulting
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