Markets

Daily Market Wire 26 April 2019

Lachstock Consulting, April 26, 2019

US wheat futures had a down day followed by an up day; Wednesday and Thursday’s settlements as follows.

  • Chicago wheat July contract Wednesday down 6.5 to 438.5 cents per bushel and Thursday up 3 to 441.5;
  • Kansas wheat July contract Wednesday down 9.5 to 411.5 and Thursday unchanged;
  • MATIF wheat May contract Wednesday down €1 to  €181.50 and Thursday up €0.50 to €182;
  • Minneapolis wheat May contract Wednesday down 8c to 503.25 and Thursday up 1.75c to 505;
  • Corn July contract Wednesday down 4.25 to 356, Thursday up 1.25 to 357.25;
  • Soybeans July contract Wednesday down 6.75 to 868.75 and Thursday up 4 to 872.25;
  • Winnipeg canola May contract down C$5.30/t to $437.80 439.10 and 442.40
  • MATIF rapeseed May contract Wednesday down €0.75 to €363 and Thursday up €2.25 to €365.25;
  • WTI crude oil June contract on Wednesday down $0.41 per barrel to 65.89 and Thursday down 0.68 to 65.21
  • Dow Jones Wednesday closed down 59.85 to 26597.05 and Thursday up 145.34 points to 26656.39;
  • AUD down to 0.7020;
  • EUR down to $1.1136;
  • CAD down to $1.3481

Market news

A rare up day with US futures managing to dig themselves off the canvas amid increased concern surrounding planting pace. Last nights rally was only after Kansas and Chicago plumbed new contract lows in some months before finding some support. CBOT Wheat was up 2.5c to 434.75c, Kansas wheat down -0.25c to 404.25c, corn up 0.75c to 347.5c, soybeans up 4c to 859.25c and Matif canola up 2.25€ to 365.25€. The Dow Jones down -134.96 to 26462.08 , Crude Oil down -0.18c to 65.03c, AUD up to 0.702c, CAD down to 1.34807c, (AUDCAD 0.94627) and the was EUR up to 1.11362c (AUDEUR 0.6302)

Statscan trims canola acres

More of the same from a fundamental perspective – wheat sales out of the US keep ticking along and are well on the way to hitting USDA targets. Out of the US the Canadian dept of Stats, or StatsCan released their estimates of their principal field crop area. While largely inline with the trade pre report guess the wheat area was a little bigger than expected which was attributed to growers rotating out of canola into wheat due to the ongoing dispute between Canada and China. Canola acres were trimmed just under 1.5m/acs as part of this switch. This gave canola futures some support but, until a trade deal is struck between it will be hard for futures to sustain any long term buying.

Weatherwise

Global weather remains largely benign with the exception of Australia. A few acknowledgements in the overnight wires but, given how comfortable the northern hemisphere looks for new crop production, there isn’t much concern for our production prospects. We finally see some rainfall in the southern growing areas on the long range forecast. While it hasn’t materialised yet there is hope that South Australia and Vic can get a drink out of this pattern – timely given the amount of country that has gone in dry to this point. Hard to define markets this week with Easter/ANZAC day holidays.

 

Source: Lachstock Consulting

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