Markets

Daily Market Wire 31 October 2023

Lachstock Consulting, October 31, 2023

Commodities eased. Brent crude eased 3 percent and the Dow Jones Industrials Average firmed almost 2 percent.

  • Chicago December wheat down US9.5c/bu to 566c/bu;
  • Kansas December wheat up 2c/bu to 645c/bu;
  • Minneapolis Dec wheat down 2c/bu to 717.75c/bu;
  • MATIF wheat Dec down €0.5/t to €231.75/t;
  • Black Sea wheat has not quoted since 11 August;
  • Corn December down 2.5c/bu to 478.25c/bu;
  • Soybeans May 2024 down 10.5c/bu to 1336.25c/bu;
  • Winnipeg canola May 2024 down C$6/t to $702.80/t
  • MATIF rapeseed May 2024 down €6/t to €442/t;
  • ASX January 2024 wheat down A$2/t to $393/t;
  • ASX January 2024 barley up A$6/t to A$330/t;
  • AUD dollar up 44 points to US$0.6377

International

According to World Weather Inc, prospects have improved this week in dry areas of center-west and northeastern Brazil. After rain last week, growing conditions are also improved across much of Argentina. Meanwhile, southern Brazil and southern Paraguay remain excessively wet, with flooding in some areas and more rain expected this week. There is growing concern that the delay in Brazil’s ability to plant soybeans will push the second maize crop planting outside the optimal planting window.
Stratégie Grains have revised its 2023-24 EU canola production estimate up by another 0.2Mt to 19.7Mt, citing better yields than previously expected in Romania, France and to a lesser extent, Germany, with production now up year on year. 

The Securities and Exchange Board of India has extended the ban on trading in agricultural commodities, including for non-basmati paddy rice, wheat, soybeans and palm oil, by another year to December 2024. 

Tunisia’s state grains office is reportedly seeking 100,000t soft wheat and 75,000t feed barley. Offers are due Tuesday.  

Russian trader Grain Flower reportedly made the lowest offer in a Bangladesh wheat tender that closed yesterday at US$294.95/t. Four other traders participated, with offers ranging from $298.38/t to $318/t.

Australia

Canola values were marginally stronger to start the week, following some offshore strength. Cereals were mostly sideways yesterday as harvest progress seems to have stalled for now as well below average minimum temperatures hamper harvest pace in the eastern states. 

Graincorp’s Harvest Update for 30 October noted that activity in CQ is beginning to wind down, with receivals now focussed on the Darling Downs and Goondiwindi regions. NSW sites now are well into harvest, with the Dubbo, Wyalong and Griffith regions receiving canola and wheat. They note that the overall quality across commodities in  Qld and NSW has been excellent. The first deliveries of barley have come into the Northern Mallee and Swan Hill regions of Vic and growers are windrowing canola. The update noted that despite an earlier start, cooler weather has since slowed activity. GrainCorp received 373kt this week (mostly in NSW) taking the total to 799kt.

 

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