Markets

Daily Market Wire 26 November 2019

Lachstock Consulting, November 26, 2019

Grains markets stepped higher, oilseeds lower.

  • Chicago wheat December contract up 15.75 cents per bushel to 531c;
  • Kansas wheat December contract up 11.5c to 435.5c;
  • Minneapolis wheat December contract up 5.5c to 498.25c;
  • MATIF wheat December contract up €2 to €181.50 per tonne;
  • Corn December contract up 1.75c to 370.5c;
  • Soybeans January contract down 4.5c to 892.5c;
  • Winnipeg canola January contract down C$4.90 to C$459.40 per tonne;
  • MATIF rapeseed February contract down €3.75 to €385.25/t;
  • Brent crude January contract up US$0.26 to $63.65 per barrel;
  • Dow Jones index up 190.85 to 28066.47 points;
  • AUD weaker at  $0.6777;
  • CAD weaker at $1.3301;
  • EUR weaker at $1.1014.

In market news Monday;

  • Wheat markets higher on lower acres
  • Black Sea dry but set to get some rain
  • Corn harvest 84pc vs 96pc average
  • stop-start harvest in Australia

 

In the wheat pits Chicago settled up 15.75 usc/bu closing at 531usc/bu, Kansas was 11.5 usc/bu higher to settle at 435.5usc/bu, while Minni rallied 5.5 usc/bu to go out at 498.25usc/bu. Corn gained 1.75 usc/bu to go out at 370.5usc/bu while Beans were down -4.5 usc/bu to settle at 892.5usc/bu WCE Canola softened -4.9 CAD/mt closing at 459.4CAD/mt with Matif Canola finishing lower by -3.75 Eur/mt. In outside markets the Dow Jones gained 190.85 points, Crude was up 0.14 bbl the Aussie was -0.0006 points lower to settle at 0.67759, the CAD rallied 0.0003 while the EUR fell -0.0006

 

“Risk on” across the board last night with US equities and the line share of commodities closing in the black.

Chicago wheat was leading the charge and, from a technical perspective is testing a run to the October high.

Ideas that the poor returns and general weather uncertainty have trimmed wheat acres even more added to the support overnight but technicals were the main driver.

Remembering it’s a short, disjointed week with Thanksgiving Holiday in the US on Thursday – many in the market take the long weekend so volumes will suffer.

The corn harvest is now in uncharted waters, post the close the USDA rated the harvest at 84pc vs 96pc average.

Thanksgiving storms are due to hit right across the top of the corn belt harvest pace will, once again grind to a halt.

What’s bad for corn will be beneficial for winter wheat however with much needed moisture forecast for the Hard Red Winter wheat belt.

Additionally, the extreme cold temps have been tempered which will reduce the risk of winter kill.

While on weather, the Black Sea is also set for some much-needed rain, predominately through the Ukraine and the winter wheat areas of Russia – the main areas of deficit so far this growing season.

France however is looking for a break from rainfall with their winter plant falling well behind the 5 yr average.

Excessive moisture will, in the areas that simply can’t plant, be saved for spring crops where possible.

Australia

Local markets kicked off the week relatively unchanged.

January ASX Wheat traded higher for small volume going through $338/t to settle at $337/t, weaker AUD and CBOT stronger and the wheat cash boards are already a touch firmer this morning in Victoria.

Windy conditions are forecasted today through the Victorian Mallee and Wimmera with some scattered showers that could slow harvest down for the day.

Canola crops through Western Victoria starting to be windrowed and should see the that harvest kick into gear in 10-12 days.

 

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