Markets

Daily Market Wire 3 August 2021

Lachstock Consulting, August 3, 2021

Monday’s wheat and corn markets lifted between 2pc and 4pc.

  • Chicago wheat September contract up US25.75c/bu to 729.5c;
  • Kansas wheat September contract up 30.25c/bu to 703.5c;
  • Minneapolis wheat September contract up 18c/bu to 922.75c;
  • MATIF wheat September contract up €5.25/t to €228.50/t;
  • Corn September contract was up 11.75c/bu to 558.75c;
  • Soybeans September contract up 0.75c/bu to 1356.25c;
  • Winnipeg canola November contract was closed for a holiday;
  • MATIF rapeseed November contract up €4.75/t to €527.25/t;
  • US dollar index unchanged at 92.1;
  • AUD firmer at US$0.736;
  • CAD weaker at $1.251;
  • EUR firmer at $1.187;
  • ASX wheat September contract up $2/t to A$324/t;
  • ASX wheat January 2022 up $6/t to $324/t.

International

Wheat traded sharply higher to start the week, making back Friday’s losses to see Chicago close +25 3/4¢, KC +30 1/4¢, Minny +18¢, and Matif +5.25€ on the earlier close.  Corn gained 11 3/4¢ and beans ended up 3/4¢ (Matif up  4.75€, with Winnipeg closed for the holiday).  Crude oil has collapsed over two bucks to $71.3 WTI / $72.9 Brent as poorer industrial figures from China weighed in on global demand ideas and concerns about the resurgence in “Delta” coronavirus do the rounds.  The DOW dropped 97 points and currencies have the AUD up to 73.6¢, the CAD $1.251, and the EUR $1.187.

USDA WASDE and crop production reports will publish 12 August, a week from this Thursday.

The weekly USDA crop update rated corn condition 62pc good-to-excellent, 2pc lower than last week, beans 60pc, 2pc higher than last, and milo 62pc, 4pc lower than previous.

Spring wheat harvest progress was pegged at 17pc, 14pc higher than last week.  The North Dakota first estimate of harvest progress this week was 6pc.

Egypt’s GASC tender saw them buy one Romanian boat at a ~US$294/t candf (including GASC costings).  Russian offers were about ten bucks over the cheapest Romanian after freight.

The EU has extended tariffs on US biodiesel imports for another five years, until 2026.

Stratégie Grain forecast EU canola production just over 17 million tonnes (Mt).

Weekly export inspections were good for corn at just under 1.4Mt, and mediocre for wheat and beans (0.4Mt and 0.2Mt respectively).  Milo/sorghum had a Texas Gulf boat to China.  Corrections to previous reports got a little attention too as two boats of corn to China were added for mid-July shipment.

USDA June crush figures were 162.1 mbu, down from earlier this spring but about as expected.

Ethanol crush was reported a hair under 440 mbu, down from 449 in May.

Russian wheat harvest figures were pegged at 12.8 million ha, with field work starting to slow down some as earlier maturing areas wrap up harvest.  Ukrainian harvest was pegged at a little under two thirds complete too.

US Corn Belt weather maps still are attracting attention, with central Corn Belt areas nearly unchanged in the latest runs but some increases in chances for rain in parts of central MN and eastern ND, boosting some hopes for more normal yields in parts.

Australia

Cereal markets firmed to start the week. Old crop protein continued to shine as bids picked up on the east coast.  Canola bids were down nearly $20/t with the board move, but again limited liquidity and almost no offers out there.

Extended run weather maps are flirting with another rain event for WA later this month, but still dry forecasts across the east coast.

 

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