Markets

Daily Market Wire 7 November 2023

Lachstock Consulting November 7, 2023

Monday’s overnight market moves were small, mostly firmer.

  • Chicago December wheat up US3.25c/bu to 575.75c/bu;
  • Kansas December wheat up 2.25c/bu to 645.75c/bu;
  • Minneapolis Dec wheat up 7.75c/bu to 728.75c/bu;
  • MATIF wheat Dec down €1.25/t to €232.25/t;
  • Black Sea wheat has not quoted since 11 August;
  • Corn December unchanged at 477.25c/bu;
  • Soybeans May 2024 up 12c/bu to 1391c/bu;
  • Winnipeg canola May 2024 up C$7.90/t to $714.60/t;
  • MATIF rapeseed May 2024 up €1/t to €452/t;
  • ASX January 2024 wheat down A$1/t to $382/t;
  • ASX January 2024 barley unchanged at A$325/t;
  • AUD dollar down 24 points to US$0.6489.

International

According to World Weather Inc. central areas of Brazil’s Mato Grosso and Minas Gerais reported locally heavy rainfall Friday-Saturday while other centre west and centre south crop areas reported scattered showers of light to moderate intensity. Southern Brazil experienced drier weather during the weekend, but waves of rain will be returning later this week. 

Argentina’s oils industry chamber reported that Sept soybean crush is estimated at 1.9Mt, with Jan-Sep crush at 21.4Mt, down by 8.2Mt year on year and a 12-year low.

The Ukrainian Grain Association (UGA) has revised up 2023-24 production citing better than expected yields, with total production up 1.1Mt, to 81.6Mt (73.8Mt previous year), including wheat at 22.0Mt, barley at 5.8Mt, maize at 28.8Mt, sunflower seed at 14.2Mt, rapeseed at 4.2Mt and soybeans at 4.8Mt. 

According to Ukraine’s Ag. Ministry, 2023-24 cumulative wheat exports are at 4.9Mt (5.4Mt previous year), maize at 4.1Mt (7.7Mt) and barley 0.7Mt (1.2Mt). 

Algeria is reportedly seeking 50kt of soft wheat for the second half of December and all of January. Shipment dates for grain originating from South America, India or Australia are a month earlier. Offers are due today.

US private exporters reported the sale of 126,000t soybeans to China during the 2023-24 marketing year and 289,575t corn to Mexico.

Australia

Eastern Australian markets firmed slightly yesterday but had to battle against the AUD that saw the sunny side of 65c, while canola was up again for its third consecutive day. Selling pace has been increasing a little, and bulk handlers are jostling for position to own specific sites.

The RBA meets today with most economists expecting a lift interest rates from 4.1 percent to 4.35 percent off the back of higher than expected quarterly inflation and strong spending figures.

Graincorp’s weekly harvest update notes that it received 719kt in the week to 6 October, taking total receivals to 1.52Mt. Qld harvest is winding down, with receivals still trickling into the Darling Downs and Goondiwindi regions. Harvest activity is well underway in NSW, with good quality wheat receivals in Wyalong and Griffith regions. Early canola is also starting to come into the most southern NSW sites, such as Henty and Boree Creek. Harvest activity is ramping up in Vic, with sites in the northern Mallee, north-east and Swan Hill regions now underway. Meanwhile, activity in the Wimmera and central regions of Vic is beginning to build, with some barley and canola receivals trickling in.

 

 

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