Daily Market Wire 25 March 2020

Lachstock Consulting, March 25, 2020

The Dow Jones Index recovered 11pc, corn rose 1pc and EU rapeseed was down 1 pc. Small moves occurred elsewhere.

  • Chicago wheat May contract down US1¢/bu to 561.5¢;
  • Kansas wheat May contract up 1.25c to 490.75¢;
  • Minneapolis wheat May contract up 4.75c to 535¢;
  • MATIF wheat May contract down €1.75/t to €194.75/t;
  • Corn May contract up 3.75c/bu to 347.25¢;
  • Soybeans May contract up 2.75¢/bu to 886.75¢;
  • Winnipeg canola May contract unchanged at $467.50/t;
  • MATIF rapeseed May contract down €5.75 to €343/t;
  • Brent crude May contract up US$0.12 per barrel to $27.15;
  • Dow Jones index up 2113 points to 20705;
  • AUD firmer at $0.5975:
  • CAD firmer at $1.444;
  • EUR firmer at $1.0803

Market news

Another surge of government money in the US and a little optimism that lockdowns will come to an end in the next month or so helped the Dow lift 2113 points to close at 20704.91.  Crude also firmed amidst the macro optimism.  Ag moves were more muted. Chicago wheat was off a penny on close (up from the night market’s lows) to 561.5¢, KC +1 1/4¢ to 490 3/4, Minny +4 3/4¢ to 535¢, and Matif -1 3/4€ to 194 3/4€ on the earlier close.  Corn was up three and three quarters to 347.25¢ while beans picked up 2 3/4¢ to 886 3/4¢ (Winnipeg unchanged, Matif -5.75€).

There have been no new export sales flashes to follow up on Friday’s Chinese business, despite an earlier rumour to that effect, other than correcting which season applied to an earlier wheat sales report.  The USDA hasn’t missed the chance to jump on the sales as evidence of the trade deal coming true though. Its media overnight focused on the deal “moving in the right direction”.  Fundamentally there was nothing new, but the comments were soothing to the bulls.

Ag markets continue to shift the focus towards new season crops.  Planting is rolling in the southern US and wheat conditions were up across the board in the state-by-state reports. National weekly reports will resume in two weeks.  Although it’s a little early, weather conditions have been conducive to planting, but many are worried about some repeat of last year’s excessive rains.

There’s been some shift in ideas on new crop acres towards more beans and less corn, as corn futures have collapsed and basis also feeling the axe.


Aussie rainfall forecasts remain solid for NSW into the end of the week, but the maps have dried out once again for SA where many are still waiting for the autumn break. The firmer Aussie dollar, flirting up around US60¢ again, isn’t helping grain prices.


Note: Lachstock offices have internal meetings today and tomorrow.  Calls and emails will be attended, but there may be some delays.


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