Friday’s wheat, corn and soybeans find strength and canola markets remain near unchanged.
- CBOT wheat was up 10.5c to 518.5c,
- Kansas wheat up 10.75c to 523c,
- corn up 10c to 351c,,
- soybeans up 13.5c to 833c,
- Winnipeg canola up $C0.6 to $C495.6,
- Matif canola down-€0.25 to €375.
- The Dow Jones down -22.09 to 25964.82 ,
- AUD down to 0.71907c,
- CAD down to 1.30591c, (AUDCAD 0.93909)
- EUR down to 1.16033c (AUDEUR 0.6195)
Wheat markets found strength on the back of, not only the anticipation of the report, but Statistics Canada (StatsCan) most recent update of their crop at 28.99 million tonnes (Mt) vs market ideas of 30.6Mt. The next hurdle rests with the USDA and what to do with exports if they decide to follow suit and reduce their current figures of 32.5 mil with exports pegged at 24.5 mil. Not only are the Canadian figures seemingly high, but the USDA is at the top end of ideas with AUS exports at 16Mt.
Corn rallied US10c/bu as yields remained the primary focus. The early start to harvest hasn’t been great and there are significant rains forecast for the Midwest that has the potential to down harvest and have a negative effect on yields. We already know that corn demand is whopping and this isn’t looking like dissipating any time soon.
Beans found strength on the back of the upcoming rains in the US corn belt as well as the fact that the Argentine Peso is drying up farmer selling in Argentina. End-of-month short markets have also led to increased buying. USDA announced 250k new crop beans sold to unknown.
Canola markets remained somewhat unchanged regardless of StatsCan’s most recent production update of 19.2Mt compared to 21.3Mt last season. Harvest area has been reduced by almost 2pc with yields down 8.5pc. Futures markets rallied during the session but fell back to unchanged by the end of the session.
In Australia, spring weather conditions will be integral to cropping outcomes in all regions. The 8-day forecast for Victoria, South Australia and Western Australia is relatively dry, predicting no more than 10mm. The New South Wales forecast is a little more promising with up to 25mm expected to fall across the eastern half of the state.