Markets

Daily Market Wire 23 September 2021

Lachstock Consulting, September 23, 2021

All markets firmed; Chicago, Kansas and French wheats about 2 per cent, everything else firmed by a smaller margin.

  • Chicago wheat December contract up US15.5c/bu to 705.75c/bu;
  • Kansas wheat December contract up 15.5c/bu to 706c/bu;
  • Minneapolis wheat December up 15.75c/bu to 903.5c/bu;
  • MATIF wheat December contract up €5.25/t to €249.50/t;
  • Corn December contract up 8.5c/bu to 525.5c/bu;
  • Soybeans November contract up 8.75c/bu to 1282.75c/bu;
  • Winnipeg canola November contract up C$6.80 to $867.40/t;
  • MATIF rapeseed November contract up €1/t to €607/t;
  • US dollar index up 0.2 to 93.4;
  • AUD firmer at US$0.724;
  • CAD weaker at $1.278;
  • EUR weaker at $1.169;
  • ASX wheat September contract has expired;
  • ASX wheat January 2022 down $1/t to $335/t.

International

Green across the boards overnight as commodities rallied across the complex with the improvement in macro optimism about the Chinese debt situation. Chicago wheat was up 15 1/2¢, KC 15.5¢, Minny 15 3/4¢, and Matif +5.25€ on the earlier close.  Corn gained 8.5¢ and beans +8 3/4¢ (Matif +1€, Winnipeg +$6.8).  Crude oil was up a buck fifty to $72.2 WTI / $76.2 Brent and the DOW gained back 338 points.  The AUD is still trading around 72.3¢, the CAD $1.277, and the EUR $1.169.

Chinese real estate group Evergrande has apparently managed to resolve some of the debt payments.  Markets heaving a sigh of relief at the news.  There is speculation that the government will step in to protect the rest of the economy.

More speculation about the US biofuels mandates is doing the rounds, as to whether the government will, or will not, cut mandate levels of ethanol in fuel.

The weekly ethanol report had production at 926,000 bpd, down from 937,000bpd prior week.  Stocks were up again to 20.1 million barrels.

Black Sea cash wheat markets firming up again. Offer prices are continuing to push higher and the Russian wheat market is reported illiquid around the tax story.

Rumours about Chinese purchases of French wheat have been doing the rounds. Noting quality concerns in France there is no clarity about whether it has actually traded and if so how much.

Extended weather maps remaining dry for most of the US Corn Belt. Harvest is starting to move along fairly rapidly in some areas.

Another ASF outbreak is being reported, this time in Haiti, raising some concerns about the possibility of it spreading to mainland North America.

Australia

Markets were slightly weaker yesterday again on lower global board prices though looking to see more support today with the overnight CBOT rally.

CBH received the first canola loads yesterday. We are rapidly moving into harvest mode and more early barley continues to come off in spots of northern NSW/Qld.

Extended run weather maps starting to add some more rain chances for early October but the coverage remains patchy and variable between models.

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