- Chicago wheat September contract up 2.5 cents per bushel to 500.25
- Kansas wheat September contract down 1.75c to 437.75c,
- Minneapolis wheat September contract up 0.75c to 523c,
- MATIF wheat September contract up €0.25 per tonne to €175.50;
- Corn September contract down 5.5c to 418.5;
- Soybeans August contract down 8.5c to 882.5c;
- Winnipeg canola November contract down C$1.30/t to $448.90;
- MATIF rapeseed August contract up €3.25 to €380;
- Brent crude September contract up $0.21 per barrel to $63.39;
- Dow Jones down 128.99 points to 27,140.98;
- AUD weakened to US$0.6950c;
- CAD weakened to $1.316;
- EUR steady at $1.114
Wheat markets rallied overnight, with continued speculation about the Black Sea region crops and ideas of Brazilian demand – Chicago wheat rallied 2.5¢ to 500.25¢, KC -1.75¢ to 437.75¢, Minny +0.75¢ to 523¢, and Matif was up 0.55€ to 175.5€ on the earlier close. Corn dropped another 5.5¢ in the spot, with Dec down 3.25 while beans were down 8.5 to 882.5¢ (Winnipeg lost $1.30 to $448.90, and Matif popped 3.25€ in the Aug spot contract to finish at 380€, with the rest of the curve unchanged). Crude oil finished unchanged with WTI at $55.9. The DOW traded down 160pts and the AUD slid further to 69.5¢. The CAD steady to $1.316, and the EUR also steady at $1.114 with rates being left unchanged. There was some speculation from the text that a rate cut, which would be the first since 2016, was discussed. This also initially sent equities markets higher, before European Central Bank (ECB) President Mario Draghi clarified in a press conference that there was no discussion of a rate cut, allowing the Euro to correct and equity markets to fall. The potential for stimulus by the ECB had been thought to further encourage the US Fed to do the same, hence the initial bullish enthusiasm.
In Australia, markets responded to talk about WA pricing 280kmt of Philippine business, popping $5, albeit on light volumes. The Australian market has suffered another recent bout of depression with old crop inverses collapsing in the absence of any new export business. However, with problems afoot in the Black Sea and prices getting to Asian export levels, market sentiment may be ready for a turn around. Light rain only remains forecast for southern regions of the Australia cropping belt.
Source: Lachstock Consulting