Grain markets closed lower overnight while oilseed markets lifted.
- Chicago wheat March contract down 3.6 cents per bushel to 523.6c;
- Kansas wheat March contract down 5c/bu to 435.4c;
- Minneapolis wheat March contract down 1.2c/bu to 513.6c;
- MATIF wheat March contract down €1 per tonne to €183/t;
- Corn March contract down 1.6c/bu to 376.6c;
- Soybeans January contract up 6.2c/bu to 884.2c;
- Winnipeg canola January contract up C$1.90/t to $454.50/t;
- MATIF rapeseed February contract up €2.25/t to €394.50/t;
- West Texas crude down US$0.12 to $58.31 per barrel;
- Dow Jones index up 28 points to 27,678 points;
- AUD weaker at $0.68382;
- CAD stronger at $0.75886;
- EUR stronger at $1.11057.
Global markets were mostly quiet, with export sales on soybeans being seen as “disappointing” at 684,000 tonnes. We’re still not sure why some were hoping for more than 1 million tonnes, but do note that there were two boats in that that were Chinese and there was also a flash of four boats today, two each from current crop and new crop. Normally, those cargoes would be expected to go to China, but in the current world political climate, this is uncertain.
Corn and wheat
Corn and wheat sales were also on the low end of expectations, at 546,000t and 228,000t respectively, including two cargoes of wheat to an unknown buyer. There were also two cargoes of sorghum to China in the mix, taking the total to 250,000t. OAIC tender results have also started to circulate, with some 500,000t reported to have been bought at around $228/t. If we pencil correctly that works better towards French rather than Argentine wheat, but Argentinian wheat could still be included.
WASDE on Tuesday
The December USDA World Agricultural Supply and Demand Estimates report will be issued on Tuesday. With no changes expected for the row-crop estimates until the January report, there’s not much more than a balancing of global estimates expected in it. On wheat, the USDA should cut its Australian crop estimates to be in line with ABARES, and it could also the adjust its Canadian figures. StatsCan will be out late tonight, but big changes are not expected.
Australian markets continue to push higher, with particular strength in the nearby as slow harvest conditions cause headaches for buyers and farmers. The inverse on ASW1 delivered Geelong and Melbourne has gone from flat to up $15/t in the past week. The ASX January wheat contract settled at $346/t as track markets push higher as well.
Global weather models are starting to push some moisture on to the maps for next week across southern Queensland. If realised, the rain will provide a great break for those hoping to plant sorghum. In the meantime, forecasts point to a sunny weekend which will offer a good run at harvest.