Markets

Daily Market Wire 29 October 2021

Lachstock Consulting, October 29, 2021

US wheat markets and corn firmed about 1pc. Canola turned lower after several strong days.

  • Chicago wheat December contract up US12.75c/bu to 772.5c/bu;
  • Kansas wheat December contract up 7.25c/bu to 790c/bu;
  • Minneapolis wheat December up 15.5c/bu to 1037.5c/bu;
  • MATIF wheat December contract down  €1.75/t to €283/t;
  • Corn December contract up 5.5c/bu to 562.75c/bu;
  • Soybeans November contract up 1.25c/bu to 1239.25c/bu;
  • Winnipeg canola January 2022 contract down C$5.30/t to $955.30/t;
  • MATIF rapeseed February 2022 contract down €7.50/t to €669.25/t;
  • US dollar index was down 0.4 to 93.4;
  • AUD firmer at US$0.754;
  • CAD firmer at $1.234;
  • EUR firmer at $1.168;
  • ASX wheat January 2022 up A$1/t to $330/t;
  • ASX wheat January 2023 up $2/t to $350/t.

International

The wheat rally continued overnight with Chicago up another 12 3/4¢, KC +7 1/4¢, Minny +15.5, and Matif -1.75€ on the earlier close.  Corn was up five and a half cents and  beans dropped 5.5¢ (Matif -7.5€, Wininpeg -$5.3).  Crude oil was more quiet with WTI trading at $82.8 / $84.3 Brent and the DOW up 240 points.  Currencies were firmer against the US dollar. The AUD firmed to 75.4¢, the CAD $1.234, and the EUR $1.168. The DXY fell to 93.3.

Global Highlights

  • Focus again is on Chinese property markets. There is talk of rating agencies downgrades ahead of Evergrande debt payments due today.
  • The newest US Spending Bill has failed to pass the House of Representatives. Progressive politicians complained it does not do enough. Weighing in at US$1.8 trillion in the latest iteration, the Bill has been gaining support to pass the Senate.  There will be more negotiations over the weekend but presently there is no indication what new agreement may be reached.
  • Regular US export sales had 0.3Mt wheat, 0.9Mt corn, 1.2Mt  beans, 1.1Mt of which was to China, but did include some switches and there were two boats of new unknown destination sales of milo, expected to be for destination China.
  • No new flashes to confirm the earlier rumours of Chinese business though.
  • Saudi Arabia’s SAGO is tendering for twelve boats of wheat for early 2022 positions.  Results should be out early next week.
  • Comments from Egypt have indicated that they will not be implementing the previously discussed bread price hikes anytime soon, despite the higher wheat prices.
  • Weather maps in the Black Sea continuing to bring insufficient moisture along the Volga River valley. There’s improvement for mid-month in parts of Ukraine but overall dryness concerns remain.
  • More talk of potential US ethanol export business trading …
  • South American weather maps remain optimistic for showers into this weekend across northern bean areas with drier weather following which will allow more plantings to kick off.   Temperatures have been spiking into Argentina but should cool down some with the rains there too.

Australia

  • Weather maps on the east coast swinging wetter again with a widespread inch forecast to fall across southern NSW into next week. Drier bias to follow.

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