Daily Market Wire 27 July 2021

Lachstock Consulting, July 27, 2021

US winter and spring wheat prices continued to creep lower.

  • Chicago wheat September contract down US7c/bu to 677c;
  • Kansas wheat September contract down 7c/bu to 639c;
  • Minneapolis wheat September contract down 4.75c/bu to 878.75c;
  • MATIF wheat September contract up €1/t to €213/t;
  • Corn September contract was up 2.5c/bu to 549.75c;
  • Soybeans September contract up 6.75c/bu to 1362.5c;
  • Winnipeg canola November contract was up C$13/t to $896.40;
  • MATIF rapeseed August contract down €3.25/t to €528.75/t;
  • US dollar index down 0.3 to 92.6;
  • AUD firmer at US$0.738;
  • CAD firmer at $1.255;
  • EUR firmer at $1.180;
  • ASX wheat September contract down $13.50/t to A$300.50/t;
  • ASX wheat January 2022 down $7/t to $307/t.


Wheat firmed some from the early lows, but still ended the day on a down note with Chicago wheat off 7¢, KC -7¢, Minny -4 3/4¢, and Matif up a euro on the earlier close.  Corn was up 2.5¢ and beans +6 3/4¢ (Matif -3.25€, Winnipeg +$13).  Crude oil is up a quarter to $72.2 WTI / $74.5 Brent and the DOW gained 83 points after very positive earnings from Tesla – and with eyes focused on more tech earnings reports later this week.  The AUD is trading around 73.8¢, the CAD $1.255, and the EUR $1.180.

The weekly US crop conditions report rated corn 64 per cent (pc) good-to-excellent (-1pc on prior), beans 58pc (-2pc), milo/sorghum 66pc (-2pc), and spring wheat at 9pc (-2pc).  The biggest week-on-week falls were reported among row crops in the western Corn Belt states.  Winter wheat harvest progress was reported 84pc complete, spring wheat 3pc.

Weather maps there are continuing to bring solid rains for western Iowa and central Illinois, though now largely missing southern Minnesota where drought impacts have expanded

Weekly US export inspections were 1 million tonnes (Mt) corn, 0.24Mt beans, and 0.48Mt wheat.  Questions about the execution of outstanding export sales to China for the old season remain in play, with only a month left in the marketing year and tepid shipping pace.  Milo/Sorghum had 91k loaded, with one boat to China.

Egypt’s GASC is back tendering again for wheat tonight, for late September.

The Black Sea region wheat harvest is reported over one-third complete, a government source pegging progress at just over 10 million ha.

Cash cereals markets there have been showing signs of short covering amid competition for near term origination to fill boats that are building on the stem.  Despite good recent field work, earlier harvest delays were still resulting in slow deliveries.

Despite the Governor of Krasnodar (Southern Russia) being in the news discussing the record wheat yield, markets are more focused now on how the later winter wheat and spring wheat crops will turn out given dry conditions stretching towards the plains of western Siberia.

Speaking of drought, the US spring wheat crop tour was assembling last night and will hit the road in the morning.  Early harvest yields continue to come in with exceptional protein but poor test weight and yields.


Local markets were still following the global moves, though higher protein grades caught a firmer bid yesterday to start the week as more short covering came into play.

Weather maps are solidifying around that next bout of rain for WA. The latest models predict falls in the 15-20 mm range across the Wheatbelt into the weekend/early next week.


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