Soybeans took a hit as wheat and corn remained range-bound.
- CBOT wheat down 0.25c to 425.75c,
- Kansas wheat up 1c to 426.75c,
- Corn down 2.25c to 348.25c,
- Soybeans down 12.5c to 986.75c,
- Winnipeg canola down C$4.1 to $516.8,
- Matif canola up €0.25 to €379.75,
- Dow Jones up 22.93 to 23539.19,
- Crude oil up 1.16c to US$55.70,
- AUD down to 0.7648c,
- CAD up to 1.2763c (AUDCAD 0.9761),
- EUR up to 1.1609c (AUDEUR 0.6585).
Chicago’s December wheat contract managed to sneak inside its US425-450cents/bushel trading range by the smallest of margins after a 0.25c loss, and strengthened to 429c before weakening to finish at 425.75c. With no fresh fundamental news to provide direction, we will need to see a swag of fund selling to push the market further south. The Argentinian wheat harvest has kicked off, with initial yields down 1.6 ???tonnes??? from last year at this very early stage. This will be worth following as production estimates remain unchanged at 17-17.5 million tonnes.
Corn has remained somewhat steady with a loss of 2.25c. Favourable weather is expected in most regions of South America over the next week or two. Once again, we wait in anticipation for the USDA’s upcoming World Agricultural Supply and Demand Estimates (WASDE) report to provide us with an ounce of direction. Until then, there is no reason to expect any notable moves in the next couple of days.
Soybean prices wore a hit of 12.5c as Brazilian weather remains a question mark coupled with a looming WASDE report later in the week. Funds remain relatively long in anticipation of lower yields and higher biodiesel mandates on the horizon for the new year.
South Australia and the western regions of Victoria are expecting no rainfall over the next week, while cropping regions in NSW and southern Queensland are seen as having the chance of getting upwards of 15-20 millimetres of rain. The calm before the storm continues to brew, with little farmer selling of note.
Source: Lachstock Consulting