Oilseed values weakened while grains settled mostly firmer.
- Chicago wheat December contract up US6 cents per bushel to 550.25c;
- Kansas wheat December contract up 7.5c/bu to 482.75c;
- Minneapolis wheat December contract down 0.25c at 529.5c;
- MATIF wheat December contract up €1/t to €193.25;
- Corn December contract up 1.5c/bu to 366.75c;
- Soybeans November contract down 6.25c/bu to 996.25c;
- Winnipeg canola November down C$4/t to $514.30;
- MATIF rapeseed November contract down €0.50/t to €384;
- Brent crude November contract up US$0.51 per barrel to $42.43;
- Dow Jones index up 410 points to 27,584;
- AUD firmer at $0.707;
- CAD firmer at $1.337;
- EUR firmer at $1.167.
Markets
US harvesting of corn and soybeans is speeding up, ahead of the USDA stocks and production update due out tomorrow. Analysts expect the USDA to raise its forecasts for US wheat and soybean production, but make little change to the corn estimate. With funds long, there may be some risk-off attitude ahead of the reports.
China is entering a holiday period, which may slow its buying and reduce fuel for the bulls this week, especially for soybeans which attempt to hold above $10 per bushel.
Rising new COVID cases around the world are creating increased uncertainty in the macro market space, as is US politics as we get closer to the US election on 4 November. The US dollar has hit a two-month high on COVID and macro issues.
On wheat, Russian cash values have finally started to roll over to come into line with the rest of the market. After a quiet week on the tender front last week, and not a lot on the immediate horizon, it feels like there is some weight on top of the market.
Frost has been seen across New South Wales, and does not seem to have done much damage, with the crop overall continuing to add tonnes. In Western Australia, conditions remain sub-par and production estimates are falling.
New-crop markets were relatively flat yesterday, with bids and offers well spread through the trade on barley markets. Old-crop markets have slowed up again as buyers get coverage on for October delivery.
Showers are pushing through parts of South Australia today, with the Eyre Peninsula expected to get 5-10 millimetres.
Source: Lachstock Consulting
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