Markets

Daily Market Wire 27 September 2021

Lachstock Consulting, September 27, 2021

Canola markets and Chicago wheat strengthened about 1pc again on Friday.  All other markets closed in mixed small moves.

  • Chicago wheat December contract up US6c/bu to 723.75c/bu;
  • Kansas wheat December contract down 0.25c/bu to 719.75c/bu;
  • Minneapolis wheat December up 4.5c/bu to 916c/bu;
  • MATIF wheat December contract up €1.25/t to €253.25/t;
  • Corn December contract down 2.5c/bu to 526.75c/bu;
  • Soybeans November contract up 0.75c/bu to 1285c/bu;
  • Winnipeg canola November contract up C$11 to $887.90/t;
  • MATIF rapeseed November contract up €4.50/t to €619.50/t;
  • US dollar index up 0.2 to 93.3;
  • AUD weaker at US$0.727;
  • CAD firmer at $1.264;
  • EUR weaker at $1.172;
  • ASX wheat January 2022 up $1/t to $339/t;
  • ASX wheat January 2023 down $0.50/t to $352/t.

International

Crypto currencies took a beating on Friday after the announcement of a ban on bitcoin trading and mining by China.

Algeria’s OAIC is tendering again for wheat. Markets are watching to see how much and how competitive French offers will be given quality.

US cattle on feed figures were firmer than expected for both placements into feedlots, 102 per cent of the August 2020 number, and inventory of cattle on feed at 1 September was 99pc of the 1 September 2020 number.

We are four trading days away from the Sept 30 stocks and small grains reports. Markets are starting to square up some positions and manage risk in preparation for the report.

Chinese wheat purchases of Australian wheat have been making global headlines. Interest and business have been ongoing for some time but global markets became more excited about the trade after a news wire reported it accounted for almost 2 million tonnes (Mt) of new crop commitment.

With South American soybean planting well underway, there’s a solid rain event building on the 2-week weather models.  Widespread falls of 1-2″ are forecast across the Brazilian soybean belt.

The Buenos Aires Grains Exchange estimated Argentina’s wheat crop at 19.2Mt, resulting from both higher area and yield than the 2020/21 production it estimated at 17Mt.

Australia

Markets were very quiet on Friday with many paying more attention to the upcoming Grand Final. Grain bids were a buck or two higher in general for new crop, and a few new grower sales hit the books, but otherwise limited trade was reported.

The forecasts remain firm for NSW and central Victoria with a widespread 20-30+ mm in the last model runs.

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