US Hard Red Winter and Paris wheat futures firmed fractionally. All other markets retreated.
- Chicago wheat July contract down US6.75c/bu to 732.75c;
- Kansas wheat July contract up 2.5c/bu to 711.25c;
- Minneapolis wheat July contract down 1.75c/bu to 747.25c;
- MATIF wheat September contract up €1.25/t to €227.50/t;
- Corn July contract down 3c/bu to 654.5;
- Soybeans July contract down 19.75c/bu to 1519.5c;
- Winnipeg canola July contract down C$2.90/t to $837.10;
- MATIF rapeseed August contract down €5.75/t to €494.75/t;
- US dollar index up 0.1 to 90.9;
- AUD weaker at US$0.777;
- CAD firmer at $1.239;
- EUR unchanged at $1.209;
- ASX wheat July contract up $2/t to $317/t;
- ASX wheat January 2022 up $5/t to $327/t.
International
Grain markets took a wave of selling early in the day session (breaking off overnight highs), bounced back mid-day, and then faded off again into the end of the day – corn settling down 3¢ and beans -19 3/4¢ (Matif -5.75€, Winnipeg -$2.9). Wheat had Chicago off 6 3/4¢, KC +2.5¢, Minny -1 3/4¢, and Matif +1.25€ on the earlier close. Crude oil has jumped a buck after indications from the OPEC+ meeting that that they’re confident in a global demand recovery (and will be continuing to ramp up production ….) with WTI hitting $62.9 / $66.4 Brent and the DOW was up a point. The AUD has slipped back to 77.7¢, the CAD $1.239, and the EUR $1.209 as the dxy hits 90.9.
US FOMC meeting statements are due out late tonight (late afternoon tomorrow US time) with most expecting to see little change but perhaps more indications about future tapering after the recent improved economic outlook
Another US export sales flash hit with 0.101Mt corn, half old crop half new crop, to unknown destination.
Canada’s StatsCan was out with their updated acreage ideas based on survey data in March. It’s rarely a significant report to the market and this year seems to be no different. They pencilled wheat area down 7pc year-on-year with cuts to spring wheat, not durum, up 4pc on canola area and up 14pc on barley.
Egypt’s GASC tender saw them cancel, citing “high prices”. The cheapest offers, noting that it’s new crop wheat, were from Romania in the high $280s per tonne range C&F. The cheapest Russian offer was in the mid $290s.
There’s chatter going around about when they’ll return and whether they’ll see any cheaper offers the next go round given the global rally.
Extended run weather maps are starting to add a little bit of moisture for Brazilian safrinha corn areas, but it’s still dry across the maps this week and crop stress is a going concern.
A Brazilian soybean cargo for destination US appeared on the stem to sail in May and has caught news headlines, the strong domestic basis in the US providing an opening for arbitrage for a shipment there. The sale had made market chatter earlier in the month, but unlike export sales reporting in the US there’s no public confirmation on import figures until logistics hit.
The EU’s MARS crop reporting agency updated their crop assessments there, not seeing a significant impact from the earlier cold snaps that spooked markets.
Local Markets & Drivers
Local markets finally kicked into gear yesterday, with both track and delivered port markets firmer across the country and volumes picking up for wheat. Barley also finally caught some more of a bid.
BOM outlooks are firming the chances of moisture, with the latest model runs pushing 15-20 mm for most of the WA wheat belt and 10-15mm for more eastern cropping areas in NSW/VIC as we head into the weekend.
Australia
Local markets finally kicked into gear yesterday, with both track and delivered port markets firmer across the country and volumes picking up for wheat. Barley also finally caught some more of a bid.
BOM outlooks are firming the chances of moisture, with the latest model runs pushing 15-20 mm for most of the WA wheat belt and 10-15mm for more eastern cropping areas in NSW/VIC as we head into the weekend.
Source: Lachstock Consulting
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