Markets

Daily Market Wire 29 September 2021

Lachstock Consulting, September 29, 2021

Losses occurred in all US grains markets. Canola and EU wheat gain.

  • Chicago wheat December contract down US15.75c/bu to 706.5c/bu;
  • Kansas wheat December contract down 15.75c/bu to 705c/bu;
  • Minneapolis wheat December down 14.25c/bu to 907.25c/bu;
  • MATIF wheat December contract up €0.75/t to €254/t;
  • Corn December contract down 7c/bu to 532.5c/bu;
  • Soybeans November contract down 10.5c/bu to 1277c/bu;
  • Winnipeg canola November contract up C$2.10 to $885.70/t;
  • MATIF rapeseed November contract up €7.50/t to €633/t;
  • US dollar index up 0.3 to 93.8;
  • AUD weaker at US$0.724;
  • CAD weaker at $1.268;
  • EUR weaker at $1.168;
  • ASX wheat January 2022 down $5/t to $339/t;
  • ASX wheat January 2023 down $1/t to $350/t.

International

Wheat markets took it on the chin last night with selloffs across the board being blamed on a mix of the firmer USD, position closure prior to Thursday’s reports, and broader macroeconomic concerns. Chicago wheat was down 15 3/4¢, KC -15 3/4¢, Minny -14 1/4¢, and Matif up three quarters of a euro on the earlier close.  Corn dropped back seven cents and beans gave up ten and a half (Matif +7.5€, Winnipeg +$2.1).  Macro markets had crude off a buck to $74.4 WTi  $79.1 Brent and the DOW dropped 570 points.  The AUD is trading at 72.4¢, the CAD $1.268, the EUR $1.168, and the dxy at 93.8.

African Swine Fever is back in the news once again with an outbreak at a plant in Russia making headlines.

US corn flash sales overnight amounted to 150,000t sold to Mexico.

EU and Black Sea markets remained slightly firmer overnight, with a focus on the Algerian tender and thoughts of more demand to follow.

Despite the weaker crude markets, natural gas remains firm. Many are continuing to call for a further rally as northern hemisphere moves into winter heat usage.

Fertilizer markets remain hot in the news with yesterday’s announcement that China would stop phosphate exports coming on the heels of the natural-gas rally which has already pushed nitrogen prices higher.

Harvest has been pushing along quickly in the US corn belt, but weather maps are still building up a storm system for early October.

Australia

Buyers yesterday lowered their bids as they watched the rain event unfold. Results off that have been very mixed so far, though the BOM is still calling for good coverage through the end of the week.

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