Markets again mixed.
- Chicago wheat September contract down US3.25c/bu to 529.5c
- Kansas wheat September contract down 5.75c/bu to 440c;
- Minneapolis wheat September contract up 2c/bu to 513c;
- Corn September contract up 0.25c/bu to 315.75;
- Soybeans August contract up 0.25c/bu to 891.75;
- Winnipeg canola November contract down C$1.10/t to $490.10;
- MATIF wheat September contract up €1.25/t to €183;
- MATIF rapeseed August contract down €1.25/t to €378.75;
- Brent crude September contract down US$0.81 per barrel to $42.94;
- Dow Jones index down 226 points to 26,314;
- AUD firmer at $0.7207;
- CAD weaker at $1.3413;
- EUR firmer at $1.1880.
There was another big China sales flash again, with 1.9 million tonnes (Mt) of corn for the new season. There was also a flash report of two boats of new season corn to unknown. Regular export sales weekly data were also out. Wheat was 676,000t, corn 639,000t and beans 3.3Mt. Overall the weekly corn and bean report figures have taken a back seat to the ongoing sales flashes, but we do note that there was another Chinese milo boat in the mix on regular sales, not a flash. Corn and bean weather remains supportive of crop outlooks, which has been weighing on the other side of the balance sheet. The market has needed the Chinese business to avoid ballooning stocks.
Tunisia bought durum. Chinese government auctions saw 100pc take-up on corn sales at prices which continued to firm. Argentine weather remained a concern without any real precipitation on the forecast maps.
The Australian Grain Industry conference (AGIC) was held online this week. Virtual is the new norm and the new platform was beneficial while missing some charm of the physical experience. Among the presenters was Lachstock CEO Nick Carracher in virtual form discussing Australian balance sheets and supply models.
Australian cash markets were mostly quiet. Wheat tended towards the offer side. Barley new crop bid/ask spreads were wide. Everyone is watching the forecast maps to see how this coming storm will evolve; the last runs are very positive for central NSW and northern SA.
Source: Lachstock Consulting