Markets

Daily Market Wire 3 December 2020

Lachstock Consulting, December 3, 2020

Wheat futures rose 2pc and oilseeds fell.

  • Chicago wheat March contract up US11.25cents/bushel to 588.5c/bu;
  • Kansas wheat March contract up 14.75c/bu to 553.75c/bu;
  • Minneapolis wheat March contract up 6.75c/bu to 556c/bu;
  • MATIF wheat March contract down €0.75/t to €204.50;
  • Corn March contract up 3c/bu to 423.75c/bu;
  • Soybeans January contract down 9c/bu to 1153c/bu;
  • Winnipeg canola January contract down C$4.20/t to $579.60/t;
  • MATIF rapeseed February contract down  €0.75 to €403.50;
  • Brent crude February up US$0.83 per barrel to $48.25;
  • Dow Jones index up 60 points to 29,884;
  • AUD firmer at $0.740;
  • CAD firmer to $1.292;
  • EUR firmer at $1.220.

International

  • Chicago SRW wheat finished the day up +11 1/4¢, KC + 14 3/4¢, Minny +6 3/4¢, while Matif wheat was off three quarters of a euro.  Corn gained 3¢ and beans dropped nine cents with more optimism about the South American crops pushing in (Winnipeg was down $4.2, Matif -0.75€).  Crude oil has picked up three quarters to $45.3 WTI / $48.3 Brent as OPEC deal ideas become more optimistic, and the DOW gained 60 points.  The USD index is slightly weaker again to 91.1, with the AUD breaking 74¢, the CAD at $1.292, and the EUR $1.210
  • Coronavirus vaccines got formal approval in the UK with the first shots expected next week
  • South American weather maps have continued wetting some, with the last runs filling in spots in central Mato Grosso that were on the lighter edge in previous models.  We’re still days away from any reality on the ground, but optimism is leaking in
  • The next USDA WASDE is due out a week from tomorrow, on 10 December.
  • New ethanol figures saw stocks increasing yet again, hitting 21.2 million barrels despite a small decrease in crush.  Gasoline demand remains a concern.
  • US October soybean crush came in at 196.5 million bushels, about as expected and a new record for October
  • Indian wheat reportedly finally hitting the export market in a bigger way with rumours that some 200,000t was sold across the border to Bangladesh.  It was a little over a month ago that overland exports there were briefly suspended after allegations that stolen government wheat was being sold.
  • Russian weather maps remain dry.

Australia

  • We continue to see the cash markets slide lower through wheat, barley and canola. Harvest is well and truly in swing and production is getting bigger
  • ASX wheat January contract is now trading at full carry to the March contract with Jan going through at $282.50/t for small volumes trading a couple of bucks softer than previous day
  • 8-day BOM forecast shows some hope of precipitation for the edge of northern NSW and Southern Queensland (10-15mm) which will assist summer crop growers. After soaring temps well above the 40s in those regions this week more rain is needed to maintain the crop.

 

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