Overnight offshore markets:

Mixed for grains and oilseeds. .

• CBOT Wheat was down -6.5c to 423.25c,
• Kansas wheat down -5c to 420c,
• corn down -4c to 360.75c,
• soybeans down -2.75c to 941.5c,
• Winnipeg canola down -3.60$C to 485.7$C,
• Matif canola down -0.75€ to 402€.
• The Dow Jones up 14.79 to 20662.95 ,
• Crude Oil up 0.59c to 51.74c,
• AUD down to 0.754c,
• CAD down to 1.341c, (AUDCAD 1.011)
• EUR down to 1.064c (AUDEUR 0.708).

Soybeans

Soybeans were lower in a reasonably quiet session. Export sales were better than expected, while the wet forecast for Argentina is still there with harvest delays are already being noted. In Brazil protesting on a major road between farm and port in the north is blocking the export pathway. None of this encouraged buying with funds continuing to add offer side pressure.

Canola

Canola could not sustain recent gains, following weaker beans and palm oil lower. Despite forecast lower carryout’s in Canada, selling was noted as speculators jumped on, based on sector weakness.

Corn

Corn closed lower with limited fresh news and a weak technical picture. The rains forecast to delay early planting have eased slightly, though there is more forecast in the long term forecast. Export sales were above market expectations and well above the USDA’s forecast, but the market is under too much pressure from the looming South American crops.

Wheat

Wheat closed lower in SRW (the CBOT wheat futures contract) due to technical weakness and an improved weather forecast. Global weather features ongoing dryness in Europe in the next 10 day period, while Russia is looking to receive some mild falls while Africa is dry and in need of rainfall. Old crop cash markets are quiet in the Black Sea with a reasonable carryout still expected to make its way into the export channel before new crop gets underway, strength in crude oil is keeping these prices strong via a stronger ruble, preventing large discounts to other origin wheat.

Australia

In Australia, the forecast for Victoria has improved slightly, though not expected to cover all key cropping regions. The rest of the country remains dry over the next 8 days. Cash markets in wheat and barley are creeping higher with the weaker dollar and lack of grower sellers.

Source: Lachstock Consulting