Markets

Daily Market Wire 25 October 2023

Lachstock Consulting October 25, 2023

Overnight markets eased at least one percent. Soybeans gained a fraction.

  • Chicago wheat down US6.75c/bu to 580.5c/bu;
  • Kansas December wheat down 7.75c/bu to 663c/bu;
  • Minneapolis Dec wheat down 9.5c/bu to 728.25c/bu;
  • MATIF wheat Dec down €3.25/t to €234.50/t;
  • Black Sea wheat has not quoted since 11 August;
  • Corn December down 6.25c/bu to 484c/bu;
  • Soybeans May 2024 up 7c/bu to 1339c/bu;
  • Winnipeg canola May 2024 down C$1.20/t to $704.20/t
  • MATIF rapeseed May 2024 down €6.25/t to €430.50/t;
  • ASX January 2024 wheat down A$4.50/t to $396/t;
  • ASX January 2024 barley down A$5/t to $330/t;
  • AUD dollar up 20 points to US$0.6356

International

The Brazil national agricultural agency, Conab, reported that as at 21 Oct, the 2023-24 primary (full-season) maize planting was 33pc complete (36pc previous year). Fieldwork was mostly concentrated in irrigated areas in Minas Gerais, while heavy rainfall hampered progress in Santa Catarina and São Paolo. Sowing is nearing completion in Paraná, with good crop development noted in most fields. Soybean plantings were 28pc complete (34pc). Warm and dry conditions delayed progress in Mato Grosso and Goiás, with replanting needed in some fields in the latter state. Fields were generally in good condition in Paraná, but with delayed development noted in some areas, including in the north due to lack of moisture. In contrast, excess moisture hindered field operations in Rio Grande do Sul, Minas Gerais and São Paolo, while it adversely impacted initial crop establishment in Santa Catarina. Wheat harvest was 59pc complete (36pc), with excessive wetness slowing progress in Rio Grande do Sul, as well as adversely affecting potential yields. Furthermore, overly wet conditions were reportedly affecting grain quality in Santa Catarina and Paraná. 

The latest European Commission MARS update noted that mild temperatures and adequate soil moisture aided crop development, ripening and the harvesting of 2023-24 EU summer crops, while also being beneficial for 2024-25 winter crop field preparations and sowing in northern regions. However, conditions were much warmer in southern areas, with low rainfall noted in significant parts of Bulgaria, Hungary, Romania and Greece, which negatively impacted maize and sunflowerseed yields. The 2023-24 maize yield forecast was revised down 2pc from last month to 7.1 t/ha, which is up 21pc from last year but 5pc below the five-year average. The sunflower seed yield was revised down 5pc from last month to be 5pc below average.

US private exporters reported sales of 117,200 tonnes of corn to Mexico during the 2023-24 marketing year.

Australia

All cereals felt the pressure across southern markets yesterday. Port Kembla in particular felt heavy with bids retreating $3-4/t at the end of the day. As harvest continues to ramp up around the country the pressure continues to build.

CBH released its first harvest report yesterday noting new season receivals of 680,500 tonnes (519kt in the past week) with grain now being received in all port zones. The Geraldton, Kwinana North and Esperance zones are well progressed and contributed most to the total deliveries. In southern areas, Kwinana South is now underway and Albany zone started last week.

Viterra received 195,613 tonnes for the week ending 22 October, taking total receivals to 272,589 tonnes. Its weekly update noted first new season deliveries last week to 14 Viterra SA sites, most in the Western region and barley the largest volume, followed by wheat and lentils.

 

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