Markets

Daily Market Wire 3 November 2020

Lachstock Consulting, November 3, 2020

Chicago ended up 9¢ to 607.5¢, KC +11 3/4¢ to 553¢, Minny +3 3/4¢ to 556¢, while Matif was off a quarter euro becasue Black Sea cash markets were reportedly quiet without much support.  Corn dropped a penny to 397.5¢ and beans were off four cents as ideas about South American outlooks improve. Matif rapeseed dropped three euros, Winnipeg canola was off $7.7.  Non ag markets also ended firm. Energy was strong as crude ended up a buck to $36.8 WTI / $38.9 Brent, some value interest seen after the sell-off last week. The DOW picked up 423 points.  The USD index is holding around 94, with the AUD at 70.5¢, the CAD $1.323, and the EUR $1.164.

  • Chicago wheat December contract up US9cents per bushel to 607.5c;
  • Kansas wheat December contract up 11.75c/bu to 553c;
  • Minneapolis wheat December contract up 3.75c/bu to 556c;
  • MATIF wheat December contract down €0.25/t to €205;
  • Corn December contract down 1c/bu to 397.5c;
  • Soybeans January contract down 4c/bu to 1052.25c;
  • Winnipeg canola January down C$7.70/t to $534.90;
  • MATIF rapeseed February contract down €3/t to €383;
  • Brent crude January contract up US$1.03 per barrel to $38.97;
  • Dow Jones index up 423 points to 26,925;
  • AUD firmer at $0.705;
  • CAD firmer at $1.323;
  • EUR firmer at $1.164.

 

International

  • The US Federal Reserve Federal Open Market Committee meeting will culminate on Thursday afternoon. Its commentary will be watched for ideas about the stability of the recovery to date as coronavirus cases continue to surge
  • US weather maps have actually added some more moisture on for HRW areas, with half an inch to an inch or so on the forecasts for this coming weekend across the southern Plains.
  • US wheat export inspections, at 287,000t, were fairly disappointing. More positive were beans, 2.1Mt, and corn, 722,000t. Milo export inspections to China were reported, 94,000t
  • Following the earlier decision by Brazil to drop import tariffs (on non Mercosur origins) for corn and beans, there’s reportedly a US bean cargo loading to Brazil right now.  Nothing on the sales as of last week, but there’s the possibility of an unknown switch or spot sale.  Despite the headline excitement, any such flow is likely to be short-lived with the new crop Brazilian harvest approaching in early 2021.
  • Flash sales had 204,000t of unknown corn
  • Crop progress figures post the market close had soybean harvest at 87pc, corn at 82pc, and winter wheat planting at 89pc as field work started to wrap up for the fall in the US
  • Global news was fairly quiet, with cash trade slowing down a little as the overall market takes some risk off the table ahead of the potential uncertainty around the US elections.

Australia

  • China has refused to remove the tariff on Aussie barley imports. While not much of a surprise it is disappointing to barley markets
  • Cash wheat boards were a fraction softer, off $2-3/t, while barley was again a smidge firmer by $1/t
  • Contract canola bids were relatively unchanged across the boards, as windrowing gets well underway along the east coast. Track PKE and Vic trading around low $590s per tonne.
  • WA harvest comes to halt as rain hits and slows things up
  • Old crop volume continues to trade in Vic at firm values, wheat trading in the range of $330-340/t site dependent and barley in the mid $240/t track range. Due to some prompt holes needing to be filled in the market and some coverage taken in what feels to be a delayed harvest.

 

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