Markets

Daily Market Wire 3 July 2020

Lachstock Consulting, July 3, 2020

Most markets weaker, canola firmer.

  • Chicago wheat September contract down US6.75 cents per bushel to 492c;
  • Kansas wheat September contract down 8.75c to 434c;
  • Minneapolis wheat September contract unchanged at 510.25;
  • Corn September contract down 7c to 343.5;
  • Soybeans September contract down 1.25c to 890;
  • Winnipeg canola November contract up $0.40 at C$476.40 per tonne;
  • MATIF wheat September contract down €0.50/t to €181;
  • MATIF rapeseed August contract up  €0.75/t to €378;
  • Brent crude September contract up US$1.11 per barrel to $43.14;
  • Dow Jones index down 92 points to 25,827;
  • AUD unchanged $0.6918;
  • CAD firmer at $1.3594;
  • EUR weaker at $1.1237.

Corn

The US market was keen to get into the long weekend, rolling over on the post-USDA area report euphoria and closing in the red.  The market looks to corn for direction and with little to spark concern from the weather maps, buyers took an early mark. COVID concerns in the US and subsequent protein demand impacts are certainly not bullish. Additionally, with the Chinese initiating increased security measures in Hong Kong, there is an expectation that more is to come in global political tension. However, the Chinese are still shopping in the US, lifting both beans and corn. US domestic corn auctions have been well bid, and indications of increased lower-tariff import permits suggest solid underlying demand. We can assume there has been a rebound in China’s hog herd post African Swine Fever, despite the western press focusing on a new strain of swine flu.

Australia

New-season Aussie cash markets continued to ratchet higher yesterday, with wheat being the primary driver. Bids were up by as much as AU$4-5/t across the board. ASX January wheat settled at $297/t, reaching weekly highs. New-season barley remained relatively flat over the course of the day, with bids and offers narrowing in through the trade. Northern feedgrain markets for both old and new-season continue to spike, with stockfeed wheat delivered to Queensland’s Darling Downs around $305 for January forward. This recent move comes off the back of some minor concerns around dryness and some patchy crops needing a drink.

Source: Lachstock Consulting

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