Markets

Daily Market Wire 6 January 2022

Lachstock Consulting, January 6, 2022

Spring and HRW wheat prices eased more than 2 per cent overnight, while oilseed values strengthened.

  • Chicago wheat March contract down US9.25 cents per bushel to 760.75c/bu;
  • Kansas wheat March contract down 17c/bu to 787c/bu;
  • Minneapolis wheat March down 22.25c/bu to 948.25c/bu;
  • MATIF wheat March contract down €3.25/t to €276;
  • Corn March contract down 7.25c/bu to 602.25c/bu;
  • Soybeans March contract up 5c/bu to 1394.75c/bu
  • Winnipeg canola March 2022 contract up C$1.60/t to $1023/t;
  • MATIF rapeseed February 2022 contract up €18.25/t to €806.50/t;
  • ASX Jan 2022 wheat contract down A$2/t to $345/t.
  • ASX Jan 2023 wheat contract unchanged at $365/t.
  • AUD dollar weaker at US$0.722c.

International

Over the past week it has been all about the veg oils. Soybean oil, canola and palm oil are all some of the best performers, and now palm oil has to deal with the threat of floods across the growing regions of Malaysia. This has compounded the global supply problems that would fall out of a lower Argentinian soybean crop, remembering that Argentina is a product market and a shorter crop would reduce the supply of crude soybean oil. The USDA’s FAO food-price index for November is due for release on January 12, and after posting fresh 10-year highs in November, it is hard to see it dropping. Jordan has bought 60,000t of wheat and promptly retendered, while Tunisia bought 125,000t of wheat along with some durum and feed barley. Ethanol stocks in the US have ballooned to levels not seen since August last year.

Australia

Markets remained largely unchanged yesterday across the boards for the majors. Pulses have lost strength again, with containers still limited and scheduled bulk shipments being largely covered for January. GrainCorp receivals from the eastern Australian harvest have surpassed 12.4 million tonnes (Mt), while in Western Australia, CBH Group’s intake has passed 20.4Mt, and South Australian bulk handler Viterra has eclipsed 5.5Mt as harvest comes to an end across the state. Replacement values from Australia remain extraordinarily wide, some US$200/t below EU values and pricing exports into new-crop EU; we would expect that gap to narrow once the backlog of orders and cashflow works through the supply chain in Australia in Jan-Feb.

More rain has delayed harvest across parts of Victoria and southern New South Wales, with 9mm recorded in south-west Victoria in the past 24 hours; this will see growers off the paddock for another day. Through northern, central and southern NSW, the soil-moisture profile continues to build ahead of the 2022 plant.

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