Markets

Daily Market Wire 28 October 2021

Lachstock Consulting, October 28, 2021

Canola and corn led overnight, closing at least 2pc firmer. Chicago closed up 1pc.

  • Chicago wheat December contract up US7.5c/bu to 759.75c/bu;
  • Kansas wheat December contract up 5.5c/bu to 782.75c/bu;
  • Minneapolis wheat December up 0.5c/bu to 1022c/bu;
  • MATIF wheat December contract unchanged at €284.75/t;
  • Corn December contract up 13.75c/bu to 557.25c/bu;
  • Soybeans November contract up 1.25c/bu to 1239.25c/bu;
  • Winnipeg canola November contract up C$21.90/t to $983.30/t;
  • MATIF rapeseed November contract down €1.50/t to €691.25/t;
  • US dollar index was down 0.2 to 93.8;
  • AUD weaker at US$0.750;
  • CAD weaker at $1.237;
  • EUR weaker at $1.160;
  • ASX wheat January 2022 down A$6/t to $329/t;
  • ASX wheat January 2023 down A$7/t to $348/t.

International

Macro market news saw US crude stocks build surprisingly. Oil inventories were up 4.3 million barrels. Gas dropped by some 2 million barrels. Weekly ethanol production was up again,1.11 million bpd this week. Stocks dropped to 19.9 million barrels despite the higher production.  Strong corn prices have done little to temper ethanol production margins at these ethanol prices.

An escalating war of words across the political divide between mainland China and Taiwan, China objecting to Taiwan joining the UN, has spooked some on in equities markets.

Egypt’s GASC tender saw six boats booked in the high $350s-per-tonne-range C&F; three Russian cargoes, one Romanian, and two Ukrainian.

Black Sea extended weather maps have been choppy. The storm system appears to be shifting further into central Russia and Ukraine with less mid-month rain forecast for the Volga River valley.

Drier weather maps for southern Brazil mid-month are opening up chances for faster field work though, with plenty of overall optimism there as conditions remain supportive to the new crop.

No new export sales flashes were reported overnight, the talk of further Chinese bean buying retreated without that confirmation.

Australia

Local cash markets remain under some pressure as northern harvest volumes increase and trade bids decrease.

Weather maps remain wet for northern and central NSW mid-month, but latest runs are starting to take the totals down slightly, dropping under an inch for more western areas.  Still plenty of time for that to swing around though.

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