Daily market wire 7 Feb 2017

Lachstock Consulting, February 7, 2017


Overview of futures markets:

Both Chicago and Kansas wheat lost ground overnight after market chatter surrounded trade deals between Brazil and Mexico coupled with the stronger US dollar despite respectable export inspections. Oilseeds rallied in an attempt to bounce back from last weeks late losses.

  • CBOT Wheat was down -7.75c to 422.5c,
  • Kansas wheat down -4.75c to 435.75c,
  • corn down -1.5c to 363.75c,
  • soybeans up 9c to 1036c,
  • Winnipeg canola up $C3.5 to $C516.8,
  • Matif canola up €2.25 to €415.
  • The Dow Jones down -19.04 to 20052.42 ,
  • Crude Oil up 0.17c to 53.18c,
  • AUD down to 0.7657c,
  • CAD down to 1.3077c, (AUDCAD 1.00114)
  • EUR down to 1.07487c (AUDEUR 0.7122).


Soybeans found strength on the back of Chinese pricing after they returned from holidays.


Although canola strengthened overnight it was less than anticipated considering the rally in soybeans and the weaker Canadian dollar. EU rapeseed production estimates have been cut by 500,000 mt as a result of winterkill.


Corn remains within its expected range between 360-370c. Farmer selling tends to appear as we edge closer to the magic 370c figure which results a slide back into the mid 360s. We find ourselves at that time where we begin to look at new crop projections as planting has begun in some areas of Southern Texas.


Wheat markets fell victim to a weak close after with suggestions that upcoming rainfall and a strong US dollar continue to take their toll. Although cash markets were rather quiet, inspections went above and beyond all expectations after reaching 618.2k which is 26% ahead of this time last year.


Domestically, weather in Australia remains a talking point with significant rainfall in the south coupled with blistering heat in the north. Dryland cotton crops in northern NSW are beginning to suffer after a month-long heat wave. Time will tell what effects this will have on what is said to be the largest dry land cotton planting since the 2010/11 season. In Victoria harvest is as good as complete in most areas with the weekend’s rainfall causing headaches for the few remaining farmers in the state’s south-west.

Source: Lachstock Consulting


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