- CBOT wheat down -7.25c to 428c,
- Kansas wheat down -6.75c to 425.5c,
- Corn down -2.5c to 351c,
- Soybean down -3.25c to 941.25c,
- Winnipeg Canola up 1$C to 507.9$C,
- Matif canola down -1.25€ to 369.25€.
- The Dow Jones down -5.269 to 21808.4,
- Crude Oil down -1.09c to 46.77c,
- AUD up to 0.796c,
- CAD up to 1.250c, (AUDCAD 0.996)
- EUR up to 1.197c (AUDEUR 0.664).
Wheat lower across all three classes, as crop potential in Russia and Canada increases. Implied volatility in December Soft Red Winter (SRW) went out at 20.5 per cent (pc). Crop estimates in Russia are now nearing the 85+ million tonnes (Mt) mark, which will exceed their physical storage capacity. While this is burdensome, it doesn’t make a difference to global export flows, with Russia’s execution capacity likely to tap out at 31.5 Mt, nevertheless it forced new lows in the Matif contract. Early Prairie wheat harvest results are coming in better than expected in Canada, which did not help. The market expects Statistics Canada (Statscan) to produce a 26Mt estimate in their report on Thursday. In other news the Ruble managed another higher close, which suggests technical strength and should see a reduction in Russian liquidity if it continues on its trajectory. The impacts of Hurricane Harvey will likely impact the US export pathway considering that 22pc of US wheat exports are done from Galveston, Houston and Belmont.
Canola managed to stay in the green, with early harvest results reducing crop potential. Volumes were lighter as the trade prepares for Statscan’s global estimate out on Thursday.
Source: Lachstock Consulting