Daily Market Wire 26 October 2020

Lachstock Consulting October 26, 2020

Wheat futures firmed on Friday.

  • Chicago wheat December contract up US10 cents per bushel to 632.75c;
  • Kansas wheat December contract up 9.5c/bu to 569.75c;
  • Minneapolis wheat December contract up 3c/bu to 577.5c;
  • MATIF wheat December contract up €0.75/t to €209.75;
  • Corn December contract up 3c/bu to 419.25c;
  • Soybeans January contract up 8.75c/bu to 1081c;
  • Winnipeg canola January up C$4.10/t to $551;
  • MATIF rapeseed February contract down €0.25/t to €397.25;
  • Brent crude December contract down US$0.69 per barrel to $41.77;
  • Dow Jones index down 28 points to 28,336;
  • AUD weaker at $0.712;
  • CAD weaker at $1.315;
  • EUR firmer at $1.185.



  • US elections are a week from Tuesday (US time), with polls trending towards confidence in a Biden/Harris victory over incumbent President Trump.
  • The USDA/USTR (Office of the United States Trade Representative) interim report on China’s progress meeting prior trade war goals suggested they have made 50/57 specific structural changes agreed upon and made “71pc” of their purchases obligations thus far.  Worth noting that their methodology appears to be mixing in outstanding sales for much of this volume.
  • On that same note, Reuters caught up with the large corn import program into China … noting that it’s well above prior Tariff Rate Quotas and that more is likely.
  • Coronavirus continues to pick back up globally, with more lockdowns hitting again in Europe and US case counts hitting new daily records over the weekend.  Despite the cases, US economic activity has been gradually picking up since mid-summer, but the resurgence in cases remains a concern.  More EU stimulus is reportedly waiting if the lockdowns bring a new economic crash there
  • Egypt’s GASC saw mostly Black Sea offers and bought three Russian boats at a ~US$278/t landed (including associated finance costings).  There was one French boat on offer but it ended up about $3/t out of the money after the freight premium.  Purchases prices were the highest in several years after the rally in wheat markets recently
  • South American weather maps are holding fairly dry for southern Brazil though a bit more moisture into central bean areas.
  • The Black Sea region weather outlook remains exceptionally dry across the next two-week maps – concerns getting stronger there yet again as winter approaches and crops remain in marginal conditions
  • Flash export sales from the USDA had 100,000t of unknown corn sales on Friday.


  • Weekend rains saw forecasts mostly confirmed, with 30-40+ mm across most of northern and north-western NSW and 50-70+ in spots
  • Rains are still falling for many but in the north should taper off into later today and tomorrow
  • The Riverina area still has 10-15mm on the maps for later this week.



Source: Lachstock Consulting


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