Overview of currency and futures markets:
Mixed for grains, lower for oilseeds.
- CBOT Wheat May contract was up 3.75c to 424.75c,
- Kansas wheat unchanged at 428c,
- corn down -0.5c to 356.25c,
- soybeans down -15.25c to 975.75c,
- Winnipeg canola down -5.80$C to 482.5$C,
- Matif canola down -4.25€ to 401.25€.
- The Dow Jones down -59.86 to 20596.72,
- Crude Oil up 0.439c to 48.14c,
- AUD down to 0.762c,
- CAD up to 1.337c, (AUDCAD 1.018)
- EUR up to 1.079c (AUDEUR 0.706).
Corn slightly lower in a very quiet session. The balance sheet remains supported at current levels as Gulf corn remains cheap on a relative basis, while ethanol crush remains strong. The COT increased their short position from -25,400 to -77,500 contracts, which could be the perfect storm for a price rally if Fridays USDA report has a surprise on the stocks or acreage front.
Canola had another large sell off, again, on the rumors of China cancelling cargoes. The sentiment is negative due to weakness in other oilseeds, despite the fact that domestic crush in Canada is strong and should see a tightening in old crop stocks.
Tropical cyclone Debbie off Far North Queensland looks to be pushing good rainfall into southern Queensland and NSW, where a few weeks ago we had been through 6 weeks of record temperatures and were digesting the BOM’s 3 month dry outlook forecast. It certainly doesn’t look like that at present as we have received good recent coverage and continue to receive top ups, which will enhance the moisture profile and should boost winter crop acres.