Overview of futures markets:
Lower for grains and oilseeds.
- CBOT Wheat was down -3.25c to 438c,
- Kansas wheat down 0c to 457.75c,
- corn down -5.5c to 365.5c,
- soybeans down -11.25c to 1011.5c,
- Winnipeg canola down -5.09$C to 513.2$C,
- Matif canola down -3.25€ to 413€.
- The Dow Jones up 34.72 to 20810.32 ,
- Crude Oil up 0.769c to 54.36c,
- AUD up to 0.771c,
- CAD down to 1.310c, (AUDCAD 1.010)
- EUR up to 1.058c (AUDEUR 0.728).
Soybeans and canola
Soybeans lead the charge lower, due to increasing South American crop predictions. Some small Chinese buying interest has been noted as prices have come off, but this has not done enough to reverse the current downtrend. The chart is challenging key technical levels which could see further selling.
Canola was under pressure from the weaker oilseeds complex, with the nearby contract posting its lowest close for the month.
Wheat markets were mixed, defying outside pressure, supported by lower new crop acres (USDA total acreage at 46 m vs 50.2 last year). As well as winter wheat production concerns and the reasonable demand story at present.
Sorghum harvest has commenced in Southern Queensland and NSW with reports of a lot of downgrades to sorghum 2, brought on by the severe heat received throughout the flowering period. The AUD remains defiant over 77 cents doing nothing for local pricing.
Source: Lachstock Consulting