Markets

Daily Market Wire 8 November 2023

Lachstock Consulting November 8, 2023

Markets eased a little. Brent crude fell 4 percent and the Australian dollar eased almost 1 percent.

  • Chicago December wheat down US5.5c/bu to 570.25c/bu;
  • Kansas December wheat down  13.25c/bu to 632.5c/bu;
  • Minneapolis Dec wheat down 4.5c/bu to 724.25c/bu;
  • MATIF wheat Dec unchanged at €232.25/t;
  • Black Sea wheat has not quoted since 11 August;
  • Corn December down 8.75c/bu to 468.5c/bu;
  • Soybeans May 2024 down 6c/bu to 1385c/bu;
  • Winnipeg canola May 2024 down C$1.70/t to $712.90/t;
  • MATIF rapeseed May 2024 down €5.25/t to €446.75/t;
  • ASX January 2024 wheat up A$2/t to $384/t;
  • ASX January 2024 barley down A$4/t to $321/t;
  • AUD dollar down 53 points to US$0.6436.

International

Brazil’s CONAB reports that as at 4 Nov, 2023-24 first (full season) maize crop planting was 40pc complete (43pc previous year). Heavy rainfall hampered progress in Paraná and Santa Catarina, but aided fieldwork in Minas Gerais. In contrast, drier conditions favoured planting operations in Rio Grande do Sul. Due to irregular rainfall, growers were more focused on soybean sowing in Goiás, while fieldwork is yet to commence in Bahia. With recent moisture aiding fieldwork in some regions, notably in Goiás and Minas Gerais, soyabean sowings advanced to 48pc complete (58pc). Fields were seen in generally good condition in Mato Grosso, Rio Grande do Sul and Paraná despite patchy rainfall. Wheat harvest was 72pc complete (43pc), with rainfall hampering progress in Rio Grande do Sul, Santa Catarina and Paraná. Excessive moisture has negatively impacted crop quality in Paraná. 

Brazil exported 3.5Mt of corn to China in October, a new monthly record, beating the previous record of 3.3Mt set in September.

Saudi Arabia’s General Food Security Authority has reported purchases of 710kt of milling wheat from Saudi Arabian suppliers based outside of the country, with 355,000 tonnes from the Saudi Agricultural and Livestock Investment Company (SALIC) at $302.90/t C&F and an equivalent volume from Al Rajhi International for Investment (RAII) at $290.20/t C&F. 

Algeria is believed to have purchased around 200kt of wheat so far in their tender at $266/t C&F, likely Russian origin. 

According to Syria’s Agriculture Minister, Syria has signed a contract to purchase 1.4Mt of wheat from Russia, with a “large amount” already arrived. 

Japan MAFF’s weekly tender is for 108,890 tonnes of milling wheat from the US, Canada and Australia. 

US private exporters reported sales of 110,000 tonnes of soybeans for delivery to China during the 2023-24 marketing year.

Australia

The local wheat market softened a little to finish off yesterday, with the Melbourne Cup holiday seeing a few bidders absent from the cash boards. The interest rate rise saw the AUD relax after the market had front run the story since last week. Canola values were again a touch firmer which was the third consecutive rally since last week. 
As expected, the RBA lifted interest rates from 4.1pc to 4.35pc. RBA said inflation had passed its peak but was still too high and was proving more persistent than expected a few months ago. 
Viterra’s weekly harvest update noted it had broken the October receivals record. Viterra received 761kt during the week ending 5 November, taking total receivals to 1.49Mt.

 

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