Note to Thursday’s market wire readers, with apologies. We have loaded the wrong URL into the daily email. The correct market wire can be viewed at the website, link here
Led by soybeans, all markets were lower overnight.
- CBOT wheat down -1c to 498.25c,
- Kansas wheat down -2.5c to 499.25c,
- corn down -5.75c to 341c,
- soybeans down -14.25c to 820.5c
- Winnipeg canola down$C4.3 to $C488.6
- Matif canola down-€0.75 to €371.25
- The Dow Jones up 14.38 to 26064.02 ,
- Crude Oil up0.03c to 68.56c,,
- AUD up to 0.73368c
- CAD down to 1.29271c, (AUDCAD 0.94815)
- EUR up to 1.16933c (AUDEUR 0.6272).
Egypt’s GASC bought 350,000t wheat at tender, comprising 290,000t Russian and 60,000t Ukrainian at US$239.77/t and $242.60/t cost and freight, trimming $10/t-plus from its previous purchase two weeks ago. US wheat was offered at this tender, and though unsuccessful on this occasion, market watchers suggest lower prices would help US wheat be competitive again. Other international consumers may re-engage to buy wheat now on these cheaper levels. A Statistics Canada crop report this week is expected to cut production. There is some concern that dryness in Russia would delay planting of its winter wheat crop, slated to commence in August.
Corn futures dipped below moving-average prices, adding to negative price sentiment already caused by bumper crop estimates. Solid trade export demand for shipments of soon-to-be-harvested corn however was outflanked by action in the soybean pit.
The soybean market continued to plummet on the back of monstrous yields around 53-54bu/ac, closing overnight nearly 2pc lower. US harvest will begin soon. A big crop outlook and US-China trade war tension continue to put a strain on US soybean futures, facing contract lows after dropping almost 30pc in three months. The US$12bn trade mitigation package announced by the US for its farmers is about to kick in.
Canola futures lost ground, closing almost 1pc down, as lower soy values and currency pressure weighed further on imminent harvest prices in Canada. European rapeseed prices were mostly unchanged.
Frost damage to crops in Victoria and southern NSW remains a real possibility following recent cold nights. Meantime encouraging, though limited, rain is forecast this week across most cropping areas except Queensland. Markets dipped amid profit-taking on last week’s rain, though it set a subdued tone for trade this week as growers held steady and consumers were willing to sit. Up north, with winter crop beyond redemption, all eyes are on moisture availability for summer crop potential.