Overnight futures markets:
Soybeans and corn are treading water in anticipation of the upcoming WASDE supply and demand report as wheat loses another 3.5c.
- CBOT wheat down -3.5c to 427.25c
- Kansas wheat down -3.5c to 426.5c
- Corn down -0.25c to 347.75c
- Soybeans up 2c to 996c
- Winnipeg canola up $C1.2 to $C520.1,,
- Matif canola up €2.25 to €384.5,
- Dow Jones up 8.81 to 23557.23,
- Crude oil down US$0.46 to US$56.89,
- AUD down to 0.7643c,
- CAD up to 1.27824c, (AUDCAD 0.97686)
- EUR down to 1.15881c (AUDEUR 0.6593).
Wheat remains range bound after closing at the 427.25c mark. Fundamental news is lacking and is predicted to do so for some time as there is no cause for surprise in the upcoming USDA report. The recent crop progress report has winter wheat at 55% good to excellent up from 52% last week with winter wheat planting bang on the overage of 91%.
Corn continues to hover around the 250c mark and remains short as the selling continues with suggestions of yield increases in the upcoming WASDE report. We saw a doily sale of 130k to unknown.
Soybean markets strengthened ever so slightly on the back of the expected reduction in the upcoming report. Continuing South American weather and production question marks remain with some dryness in Brazil and a lack of acres in Argentina.
Domestically, we are expecting up to 10mm of rainfall in western VIC and eastern SA over the next week with minimal rainfall on the horizon in NSW and QLD. Cropping regions of southern WA can expect anything between 5-15mm.
Source: Lachstock Consulting
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