We have seen a slight signs of strength from wheat and corn with minimal gains for both commodities.
Soybeans mad up ground as canola took a hit with Winnipeg falling over $C5 with Matif Canola weakening almost €5. We are currently treading water in anticipation of the upcoming US election and Wednesday’sUSDA report.
CBOT Wheat was up 2.25c to 414.25c, Kansas wheat up 1c to 411.5c, corn up 0.5c to 357.5c, soybeans up 1.75c to 981.5c, Winnipeg canola down -$C5.8 to $C501.4, and Matif canola down -€4.75 to €390.75.
The Dow Jones down -42.39 to 17888.28 , Crude Oil down -0.53c to 44.13c, AUD up to 0.7685c, CAD down to 1.3325c, (AUDCAD 1.0239) and the was EUR down to 1.1056c (AUDEUR 0.6953).
Wheat markets traded relatively flat with some minimal support coming from suggestions that ongoing damp conditions are starting to take their toll on Argentinian crops.
The current situation in Egypt surrounding the devaluation of their currency is creating headaches as executing imports is becoming more expensive.
Corn remained relatively unchanged as farmer selling has come to a screaming halt on the back of recent poor prices.
Export demand for corn remains off the pace as cheap feed wheat continues to dominate the market.
There have been suggestions that the upcoming USDA report is going to put forward an increase in Soybean yields from 51.4bu/acre in October. A minimum of 52bu/acre is expected.
There has also been suggestions that the 2017 plantings are going to reach record levels. Canola markets lost ground as traders are generally becoming more optimistic with harvesting prospects as the weather looks to be improving in Canada.
The next ten days looks to provide reasonable harvesting conditions, although the short days and damp mornings are only providing growers with a short window of between 3-4 hours a day to harvest.
Back home in Australia the market seems to be sitting on its hands as consumers are happy to sit back and wait for what is setting up to be a big harvest. New crop APW delivered Melbourne is hovering around the $245 figure.
Up north the harvest is starting to show a good range of milling grades and strong protein levels.
The eight day rainfall forecast currently has Mackay, Fitzroy and the Darling Downs in QLD set to receive up to 25mm in some areas. Northern NSW can expect in excess of 25mm, as can the Central West.
The Western Districts in VIC can expect between 10-20mm this week with the Mallee forecast to get less than 5mm.
- Source: Lachstock Consulting