Markets

Daily market wire 8 March 2018

Lachstock Consulting, March 8, 2018

Overnight futures markets

All red as wheat, soybeans, corn and canola all lose ground overnight.

  • CBOT wheat was down -9.75c to 497.25c,
  • Kansas wheat down -7.25c to 534.25c,
  • Corn down -1c to 387.25c,
  • Soybean down -9.5c to 1065.25c,
  • Winnipeg canola down -$C4.1 to $C516.6, and
  • Matif canola down -€3.25 to €348.5.
  • The Dow Jones down -82.76 to 24801.36 ,
  • Crude Oil down -1.25c to 61.35c,
  • AUD down to 0.78209c,
  • CAD down to 1.2905c, (AUDCAD 1.00944)
  • EUR down to 1.24102c (AUDEUR 0.6301).

Wheat

Chicago wheat futures fell just shy of US10c/bu overnight alongside Kansas City wheat futures which lost 7.25c/bu as some weather models have rain on the horizon within 3-5 days.

We aren’t expecting to see many significant changes in tonight’s upcoming USDA report.

Wheat sales are expected at 350,000t and in order to meet USDA expectations we need to hit 301,000t. The Hard Red Winter wheat growing region is still thirsty but the market’s failure to reach new highs is seeing many longs reluctant to carry their current position.

Corn

Corn lost 1c/b in last night’s session in what was an uneventful 2c/bu trading range.

Ethanol production remains strong and has improved slightly week on week with production coming in at 1057k with stocks at 23.1mil.

The market is expecting the weekly sales report to exceed 1million tonnes, while in order to meet USDA expectations it would only need to be 470,000t.

Canola

Canola futures followed the soy complex into red territory overnight; Winnipeg fell Can$4.10/t and in France the Matif closed €3.25/t lower. Rainfall across Canadian cropping regions is the main driver of this.

Soybeans

Soybeans fell 9.5c/bu in anticipation of the upcoming report.

Once again rainfall in Argentina is a big talking point, as it has been for some time now with some showers on the horizon in the 6-10 day forecast but fears are it’s going to fall too far north to provide any significant benefit to the crop.

Australia

Domestically things remain somewhat unchanged with a dry week up ahead for all cropping regions.

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