Markets

Daily Market Wire 30 April 2020

Lachstock Consulting, April 30, 2020

Wheat closed 1-2pc lower. Corn, soybeans and EU rapeseed were up. US dollar lower.

  • Chicago wheat July contract down US9.5¢/bu to 516.5¢;
  • Kansas wheat July contract down 6.75c to 477¢;
  • Minneapolis wheat July contract down 6.5c to 507.5¢;
  • MATIF wheat September contract down €2.5 /t to €183.25;
  • Corn July contract up 2.5c/bu to 314.5¢;
  • Soybeans July contract up 5.5¢/bu to 837.5¢;
  • Winnipeg canola July contract up $C0.30 to $462/t;
  • MATIF rapeseed August contract up €1.75 to €364.75;
  • Brent crude June contract up US$2.18 per barrel to $22.54
  • Dow Jones index up 532 points to 24634;
  • AUD firmer at $0.6550;
  • CAD firmer at $1.388;
  • EUR firmer at $1.088.

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Markets

Wheat was back on the chopping block again. Useful rain is still forecast, new crop harvest is approaching and a quiet feeling on the demand side globally all are hitting the current boards.  Chicago closed off 9.5¢ to 516.5¢, KC -6 3/4¢ to 477¢, Minny -6.5¢ to 507.5, and Matif down another 2.5€ to 183.25€ on the earlier close.  Corn was up 2.5 to  314.5¢ and beans were up 5.5¢ to 837.5¢.  Crude has jumped two bucks to $15.1 WTI/$22.5 Brent after inventory figures grew less than expected, though they’re still massive. The DOW was up 532 points as hopes about a coronavirus solution circulate amid expectations US officials will allow experimental treatments.  The AUD’s about 65.5¢, the CAD $1.388, and the EUR $1.088.

It was largely a quiet night for agricultural markets globally.  More Mexican bean demand has flashed, a reminder that the “new NAFTA” comes into effect in July.  The Mexico purchases were spread across old season and new,109,000t in total, but nothing from China.

Ethanol production was down another 5pc to renewed record lows although the low production did see stocks finally draw down.  DDG markets have also eased slightly as more demand shifts away there after the price rally – more talk of peas and feed wheat in some western areas, and a return to higher corn/meal rations in the east.

EU and Black Sea region weather maps remain solid for most of Europe but have been more variable in the runs for southern Russia and the Volga.  Field work delay in Argentina continued after recent rain.

The May WASDE report will be released by the USDA the week after next but markets are already anticipating changes to new crop balance sheets. According to market sentiment, there’s a real risk corn carryout could be sky high, but USDA would tend to moderate values more carefully than market chatter. Wait and see.

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Australia

Australia’s focus remains on the rain.  Old crop markets are effectively dead in the short term, with buyers quiet and the only real liquidity happening on new crop which continues to track global markets.  Chances of snow coming already for the snow fields in NSW. Get your skis ready!

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