Wheat closed down mostly 1-2 per cent, but canola closed down 2-4pc. Row crops settled less than 2pc lower. Crude oil prices were lower after the Suez Canal reopened. The DOW was down 100 points.
- Chicago wheat May contract down US15c/bu to 601.75c;
- Kansas wheat May contract down 11c/bu to 558.5c;
- Minneapolis wheat May contract down 9c/bu to 601.75c;
- MATIF wheat May contract down €1/t to €209.75;
- Corn May contract down 7.5c/bu to 539.25c;
- Soybeans May contract down 26.25c/bu to 1366.75c;
- Winnipeg canola May contract down C$29.10/t to $727.10;
- MATIF rapeseed May contract down €12/t to €501.25;
- US dollar index up 0.4 to 93.3;
- AUD weaker at US$0.759;
- CAD weaker at $1.264;
- EUR weaker at $1.172;
- ASX wheat May contract unchanged at $280;
- ASX wheat January 2022 down $1/t to $289.
It’s a wait-and-see moment in agricultural markets, with tonight’s upcoming USDA reports weighing heavily on oilseeds and grains. Sentiment appears to swinging towards more corn/fewer bean acres, while still retaining the larger overall pie. But markets are also cautious as the current tight balance sheets make each million-acre switch substantial. Milo and spring wheat acres are also both being watched closely.
The USDA Prospective Plantings report will provide the first official estimates on corn, bean, spring wheat and milo acres for 2021.
Traders will step straight from report day into end-of-week balancing as markets will be shut on Good Friday.
Ocean freight markets are still working to sort out the post-Suez blockage impacts, with disruptions and delays still cropping up across front end freight.
A new set of flash sales on old crop corn had 100,800t reported sold to unknown.
There’s ongoing pressure on old crop wheat markets in the Black Sea as markets look at the increasingly short export window to fill any old crop demand and few new buyers coming in. Algeria’s OAIC is tendering tonight.
More pressure is hitting vegoil markets amid reports of more sales in palm and quiet regional demand.
Local markets continue to see limited liquidity, slowed by commencement of planting activity and trade continuing to focus on execution/logistics from prior sales.
The BOM ENSO indicator shifted to neutral yesterday. La Niña is formally over – though long run forecasts are continuing to call for some improve rainfall outlooks into planting on the east coast.
Source: Lachstock Consulting
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