Most US markets gained 2pc on Friday, but spring wheat lifted an exceptional 4pc.
- Chicago wheat July contract up US11.5c/bu to 687.75c;
- Kansas wheat July contract up 12.25c/bu to 636.5c;
- Minneapolis wheat July contract up 35.25c/bu to 812.75c;
- MATIF wheat September contract down €0.75/t to €214.75/t;
- Corn July contract up 20.75c/bu to 682.75c;
- Soybeans July contract up 34.5c/bu to 1583.75c;
- Winnipeg canola July contract up C$14.60/t to $904.40;
- MATIF rapeseed August contract down €1.25/t to €537.50/t;
- US dollar index down 0.4 to 90.1;
- AUD firmer at US$0.773;
- CAD firmer at $1.209;
- EUR firmer at $1.216;
- ASX wheat July contract up A$1.50/t to $309/t;
- ASX wheat January 2022 down $4/t to $312/t.
Friday’s US wheat futures firmed but, as has been the case lately, it was Minneapolis that stole the show. The July contract settled at 812.75usc/bu which was up 35.25usc/bu on the day and 85.25usc/bu higher on the week. Corn also rallied 20.75usc/bu, beans were up 34.5usc/bu and canola in Canada added another C$14.60/mt. Crude firmed another US$0.81/bbl and the Aussie was trading at 0.7729
It’s all about spring wheat and corn has almost taken a back seat. The US weather is a basket case. There’s no rain in the spring wheat areas and way too much where they are trying to harvest winter crop. The vomitoxin levels and talk of disease in Soft Red Winter wheats will start to get some airplay as well. The fact remains, the world needs the US row crops to perform and the sensitivity to any weather hiccups will be large.
France’s soft wheat crop ratings in the week to May 31 were flat, at 80pc in good-or-very-good condition. Corn ratings were also unchanged according to data published by France AgriMer on Friday.
China’s state news outlet Xinhua, citing the Ministry of Commerce, reported that issues over anti-dumping and countervailing taxes on barley imported from Australia will be handled according to WTO rules.
India had the lowest daily number of new cases of COVID-19 reported in two months, 114,460. The country has been plagued by a devastating second wave of infections that has yet to subside in the rural, although Delhi, the capital, and other places are prepared to relax lockdown restrictions. Only 16.4pc of adults over the age of 12 have received their first dose of vaccination in the country.
Mexico’s voters participated in the country’s largest election in its history. In the mid-term elections, about 20,000 posts are up for grabs. Violence disrupted the campaigning. In the last 200 days, at least 89 politicians have been killed. With the aid of other left-wing parties, Morena, President Andrés Manuel López Obrador’s party, is expected to retain a majority.
Old crop markets remained relatively flat over the course of the week with liquidity trading across the port zones. Barley was a fraction stronger on the bid side on Friday and gathered more interest for the July August slots. We are seeing some more malt demand in SA and Victoria still only trading a premium of $3-5/t over feed barley. Barley vessels continue to hit the stem for June July programs in Victoria and SA ports with approx. 250,000t on the stem between the two states.
New crop wheat markets were a fraction firmer across the boards for the week moving up $4-5/t, with barley also up $2/t for the week. Canola markets fired along again, with WA finishing up Friday at $815-20/t FIS and East Coast track bid $780-level to the grower.
Weather maps continue to build for this week from WA right around to Northern NSW. Most cropping regions are set to get a nice top up of moisture and the longer-term forecast are now calling for a avg to above avg winter rainfall.
Source: Lachstock Consulting