Wheat and oilseed markets settled lower in overnight trading.
- Chicago wheat December contract down US 0.75 cents per bushel to 549.50c;
- Kansas wheat December contract down 6.75c/bu to 476c;
- Minneapolis wheat December contract down 5c/bu to 524.50c;
- MATIF wheat December contract down €1.25 per tonne to €192.25;
- Corn December contract down 2c/bu to 364.75c;
- Soybeans November contract down 3.25c/bu to 993c;
- Winnipeg canola November down C$2.30/t to $512;
- MATIF rapeseed November contract down €2.75/t to €380.75;
- Brent crude November contract down US$1.40 per barrel to $41.03;
- Dow Jones index down 131 points to 27,453;
- AUD higher at $0.7128;
- CAD lower at $1.3389;
- EUR higher at $1.17412.
Markets softened in the lead-up to tomorrow’s production and stocks updates from the USDA. Soybean futures have fallen roughly 5pc since closing at a two-year high on 18 September. The weakness seems to be a reaction to the disappearance in recent days of export demand from China as it takes holidays. Ahead of the first US presidential debate, many investors and traders are looking to reduce risk.
Russian wheat values found some support from Turkey as it looks for rain to plant the remaining 40 per cent of its crop. La Nina is getting more air time, and the weather event is negative to the Argentina crops at a time when Brazil is sold out of current crop, and China’s reliance on the US has increased. La Nina traditionally bodes well for eastern Australian grain production.
Markets again remained relatively unchanged through the trade, with grower bids pushed a couple of dollars firmer along the east coast, and representing values similar to those at the end of last week. Rain pushed through South Australia, with 5-8 millimetres falling on most of the state’s cropping regions yesterday. Harvest logistics continue to be a focus for the up and coming harvest, with labour and COVID-related border restrictions now easing.
Source: Lachstock Consulting