Markets

Daily Market Wire 30 May 2024

Lachstock Consulting, May 30, 2024

Markets eased about 1 percent. Canola and rapeseed firmed a little.

  • Chicago December 2024 wheat down 6c/bu to US736.25c/bu;
  • Kansas Dec 2024 wheat down 10.75c/bu to 750.25c/bu;
  • Minneapolis Dec 2024 wheat down 6.25c/bu to 775.25c/bu;
  • MATIF wheat Dec 2024 down €1/t to €268.50/t;
  • Corn Dec 2024 down 6.5c/bu to 478.75c/bu;
  • Soybeans Nov 2024 down 13.75c/bu to 1196.75c/bu;
  • Winnipeg canola Nov 2024 up C2.70/t to C$692.90/t;
  • MATIF rapeseed Nov 2024 up €4.25/t to €500.75/t;
  • ASX Jan 2025 wheat down A$9/t to $398/t;
  • ASX Jan 2025 barley unchanged at $347.50/t;
  • AUD dollar down 40 points to US$0.6610.

International

The Manitoba Agriculture, Food and Rural Development Crop Report for the week ending 28 May noted that significant rainfall was recorded across the province, with the highest totals in the Central region. All regions have accumulated at least 100pc of normal precipitation since 1 May, while many areas have exceeded 200pc of normal precipitation. 2024-25 sowing was estimated at 64pc complete (62pc previous year, 75pc 5-year avg), including spring wheat at 87pc, barley at 79pc and canola at 41pc complete. 

Reuters reported that India is poised to begin wheat imports, as the approaching end of general elections removes a key hurdle. New Delhi is expected to remove a 40pc tax on wheat imports after June, as India’s new-season wheat harvest rolls in and the Russian harvest begins. They quoted a government source as saying the removal would help ensure India’s own reserves did not fall below a psychological benchmark of 10 million tonnes. 

China has authorised imports of two varieties of genetically modified corn from Argentina. CIARA-CEC, the industry body in Argentina representing cereal exports and oils, predicted shipments would begin in July. 

The International Monetary Fund forecast China’s economy to grow 5pc this year, after a strong first quarter, upgrading its earlier forecast of 4.6pc. Strong GDP data in the first quarter and policy measures further add to a growing number of optimistic signs that the Chinese economy remains on a solid recovery track. 

Jordan’s state grain buyer has issued an international tender (June 4) to buy up to 120kt of milling wheat from optional origins.

Australia

Local eastern market values were a touch softer to close out the day, with an increased grower selling appetite ahead of the rain. Delivered markets eased around A$3/t. The ASX Jan 25 eastern Australian wheat contract ended the day down $9/t at $398/t.

WA has picked up some decent rainfall totals across the southern cropping zones throughout the week with the second front on Saturday hopefully pushing further north. The rain band pushing through the eastern states from today and into the weekend is expected to bring a much needed 10-50mm for Vic. SA currently is forecast to receive only 5-15mm, NSW a widespread 15-50mm and southern Qld 5-25mm.

 

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