Markets

Daily Market Wire 5 June 2020

Lachstock Consulting, June 5, 2020

Firmer markets everywhere except European rapeseed.

  • Chicago wheat July contract up US11.75c/bu to 523.75;
  • Kansas wheat July contract up 14.5c to 472.25c;
  • Minneapolis wheat July contract up 6c to 526.25c;
  • MATIF wheat September contract up  €3.25 to €187.50/t;
  • Corn July contract up 5c/bu to 329¢;
  • Soybeans July contract up 10.25¢/bu to 867.75¢;
  • Winnipeg canola July contract up $C2.70 to $463.60/t;
  • MATIF rapeseed August contract down €1.25/t to €373/t;
  • Brent crude August contract up US$0.20 per barrel to $39.99;
  • Dow Jones index up 12 to 26282;
  • AUD firmer at $0.6946;
  • CAD firmer at $1.3497;
  • EUR firmer at $1.1339.

Markets

In the the wheat pits Chicago settled up 11.75 usc/bu closing at 523.75usc/bu, Kansas was 14.5 usc/bu higher to settle at 472.25usc/bu, while Minni rallied 6 usc/bu to go out at 526.25usc/bu. Corn gained 5 usc/bu to go out at 329usc/bu while Beans were up 10.25 usc/bu to settle at 867.75usc/bu WCE Canola rallied 2.7 CAD/mt closing at 463.6CAD/mt with Matif Canola finishing lower by -1.25 Eur/mt. In outside markets the Dow Jones gained 11.93 points, Crude was up 0.12 bbl the Aussie was 0.0022 points higher to settle at 0.69463, the CAD rallied 0.0005 while the EUR gained 0.0103.

Macro markets have been watching the ongoing stimulus questions in Europe, with the latest round of bond buying helping support the European currency. Overall questions about the fiscal downturns from COVID-19 continue to fester globally though and deflationary concerns remain in play as central banks globally have had trouble translating asset purchases into inflation.

US drought monitor flag

The latest US drought monitor update out late last night saw significant expansions to severe drought areas (by their model) for western Kansas and, to be blunt, almost all of the HRW areas. This was not unexpected given recent weather but it is continuing to flag concerns as crops finish filling in northern parts of the southern Plains. More early harvest results are trickling in from south of the Panhandle but bringing no real surprise on yield. The bigger questions will be western Kansas and the associated drought and frost impacts. Some early results showed surprisingly weak protein levels but picking up more recently, which is not surprising given lower yields. Black Sea cash markets remain similarly firm and weather there is not to be ignored either.

Row crops right

US row crop weather concerns are mostly few and far between right now, with some western areas in need of a touch of moisture but fairly positive outlooks off the storm coming up from the Gulf.

Australia

Aussie old crop cereal markets remained largely offer side and untraded yesterday, buyers continuing to remain hand-to-mouth and only small parcels trading along the east coast.. New crop bids to growers edged lower again and trade markets felt quiet and were relativity unchanged. ASX January 2021 wheat and barley contracts, though untraded, settled a tad firmer, up $3-5/t. Another cold start to the morning with some areas through southern NSW getting a light frosting. The short term forecast is for drier conditions for most of Australian cropping belt.

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