Higher for grains and oilseeds.
Wheat found support, with Hard Red Winter wheat leading the charge, and an Iraq tender plus a weaker US dollar increasing export potential there. The fund position is at near-record levels here, so any export increase could support prices. Matif wheat was up €0.75 per tonne to €202.25/t, Black Sea Wheat was down $2.25/t to $245.25/t and the ruble rose in value to $0.0149. Russian wheat values softened on phytosanitary concerns which continue to threaten the resolve of buyers and sellers, but cash prices in Europe, Australia and the US are increasing.
Corn finished with decent gains, following the weaker dollar and strength in beans. Ethanol production for the week rose 0.5 per cent for the week at 1.048 million barrels per day.
Beans ignored further weakness in crude oil and bid the market on China-US optimism, with both governments meeting over the weekend, and a weaker US dollar assisting. The US currency softened as the chief of the Federal Reserve left interest rates on hold, and stated that they were fine where they were. This encouraged a spike in equities, and saw the US dollar lose 0.62pc. Soybean meal was up $3.3/t and soy oil was up 0.59 points.
Aussie markets were stronger in the south yesterday, with harvest delays limiting grower selling activity. Weather-wise, we are not expecting any moisture, which should enable growers to get a good run at harvest in Victoria and Western Australia. World wheat prices are creeping higher, so it will be interesting to see how local and global consumers behave.
Source: Lachstock Consulting