Daily Market Wire 23 September 2020

Lachstock Consulting, September 23, 2020

Wheat firmed. Oilseeds tended lower.

  • Chicago wheat December contract up US3.25 cents per bushel to 558c;
  • Kansas wheat December contract up 4.5c/bu to 491.75c;
  • Minneapolis wheat December contract up 5c at 539.75c;
  • MATIF wheat December contract up €1.50 per tonne to €194.75;
  • Corn December contract down 0.5c/bu to 369.25c;
  • Soybeans November contract down 2.75c/bu to 1019.75c;
  • Winnipeg canola November down C$5.20 to $521.20;
  • MATIF rapeseed November contract unchanged at €391;
  • Brent crude November contract up US$0.28 per barrel to $41.72;
  • Dow Jones index up 140 points to 27,288;
  • AUD weaker at $0.714;
  • CAD unchanged at $1.331;
  • EUR weaker at $1.168.


  • GASC was, as expected, higher. Last tender the lowest Russian offer was US$235/t – this time round the cheapest boat was $242/t. They ended up buying 405,000t which was a mix of Russian, France and the Ukraine – no Polish this time round.
  • French featuring in the offer line-up is an indication of how elevated Russian values are. Additionally, this highlights how cheap Europe is on a relative basis.
  • Global demand keeps ticking along – Thailand buying 180,000t of feed wheat at US$258/t which, back of envelope is well above Australian replacement.
  •  Algeria is in for 50,000t of barley. Australian origin wheat replacement cost would be circa US$220-225/t cnf (best guess)
  • Chicago wheat managed to hold on and finish in the black. It’s hard to know how much of the recent Chicago strength can be attributed to Russian cash.
  • Fears continue to surround the second and/or third COVID wave – Europe one area already taking steps to control a wider outbreak.


  • New crop cash wheat markets were down A$3-4/t on the bid boards while ASX contracts were relatively unchanged with more liquidity trading late yesterday on the January and March 21 east coast contracts
  • New crop barley showed some strength on the grower boards with values firmer by $2-3/t after the Saudi results and softer AUD
  • Showers continued to push through parts of SA drip feeding the crop with much the same forecasted for the balance of the week
  • Reports are now coming in with some damaged crops from Monday storm that rolled through parts of Junee with hail damage to wheat and canola crop.


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