Markets

Daily Market Wire 7 May 2020

Lachstock Consulting, May 7, 2020

Wheat, corn and beans weaker, canola slightly firmer.

  • Chicago wheat July contract down US3.25¢/bu to 517.5¢;
  • Kansas wheat July contract down 6.5c to 477.5¢;
  • Minneapolis wheat July contract down 1c to 509.75¢;
  • MATIF wheat September contract up €0.50 to €186.25/t;
  • Corn July contract down 2.75c/bu to 314.75¢;
  • Soybeans July contract down 7¢/bu to 832.5¢;
  • Winnipeg canola July contract up $C1.10 to $465.40/t;
  • MATIF rapeseed August contract up €0.75 to €370.5/t;
  • Brent crude July contract up US$1.25 per barrel to $29.72
  • Dow Jones index down 218 points to 23665;
  • AUD weaker at $0.64;
  • CAD weaker at $1.415;
  • EUR weaker at $1.079.

Markets

A slight turn for the weaker on wheat again, with varying ideas on weather impacts in Europe and ongoing concerns in Russia battling against the overall weakness on the demand side. Chicago ended off three and a quarter cents to 517.5¢, KC -6.5¢ to 477.5¢, Minny off a cent, and Matif was up half a euro to 186.25€ on the earlier close.  Row crops were weaker with corn down two and three quarter cents to 314 1/4¢ and beans down seven to 832.5¢ (canola was up, with Winnipeg gaining a buck ten and Matif up 0.75€).  WTI Crude is trading around $24.2, Brent $29.8, and the DOW gave up 218 points.  The AUD’s off to 64¢, the CAD $1.415, and the EUR $1.079. Coronavirus restart talks remain in play and macro risks over the blame game continue to worry some on the equity side, with fears that they may escalate into a new trade war.

As we mentioned the other day, weather’s in vogue – and Russian maps continue to feed the the bull hopes with the current two week models bringing very little moisture for key cropping areas along the Volga.  Recent rains have helped, but the question is how much was lost.  French maps look a little better, as do central German outlooks, but the weather worries from the last month are far from over.  Reports of Chinese purchases of French wheat haven’t hurt sentiment either.

US ethanol production saw a tick up finally, confirming prior suggestions that some plants were turning back on some capacity to fill DDG contracts, but the demand side in general for US corn remains dismal.  Next week’s WASDE is getting more and more focus as it approaches, with a wide range of opinions as to new crop corn ending stocks, none of which are bullish by traditional standards, but it is all a matter of how the figures fall relative to sentiment.  Meat demand is also starting to kick up very slightly, with cattle kill up 16,000 head on the week prior and more talk that cash sales yesterday saw a better crowd of buyers (though we did hear that earlier – only to see it ease back the other day…).  Comments from meat conglomerate Tyson Foodsare probably well reflective of the situation saying they’re getting the gears moving again, but with more temporary shutdowns likely to come and a bumpy road ahead.

Australia

Australian weather maps remaining dry and positive towards planting – rolling hard across the country.  Markets still seeing a little more demand interest moving, but it’s hit and miss – no substantial changes from the other day.

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