Markets

Daily Market Wire 9 April 2021

Lachstock Consulting, April 9, 2021

Thursday’s corn markets lifted 3 per cent, wheat and oilseeds about 2 per cent and US dollar weakened.

  • Chicago wheat May contract up US12.5c/bu to 628.75c;
  • Kansas wheat May contract up 13.25c/bu to 576.5c;
  • Minneapolis wheat May contract up 15.75c/bu to 640.25c;
  • MATIF wheat May contract up €4.50/t to €211.75/t ;
  • Corn May contract up 19.25c/bu to 579.75c;
  • Soybeans May contract up 6.5c/bu to 1415.25c;
  • Winnipeg canola May contract up C$13/t to $813.40;
  • MATIF rapeseed May contract up €16/t to €512.75/t;
  • US dollar index down 0.4 to 92;
  • AUD firmer at US$0.765;
  • CAD firmer at $1.256;
  • EUR firmer at $1.191;
  • ASX wheat May contract up $5/t to $281/t;
  • ASX wheat January 2022 up $1.70/t to $291/t.

International

Grains and oilseeds markets rallied across the board with help from the weaker dollar and some overall optimism for corn starting to build even as we approach tomorrow’s WASDE report.  Cattle markets reacted as expected with live and feeders both off a quarter percent or so, but interesting to see hogs continue to push new highs, up half a percent front end, after firmer cash market reports.  Macros were more quiet with mixed crude closing at $59.6 WTI / $63.2 Brent and the DOW up 57 points.

USDA’s April WASDE report, the last purely old crop S&D will be released tonight. Survey figures remain just under 1.4 bbu for corn, 0.85 bbu for wheat, and nearly unchanged for beans, slightly sub-120 mbu from last report. The first official 2021/22 figures will be published in the May report.

New US jobless claims were up well above expectations to 744,000 versus ideas of a continued pull back. More layoffs were reported despite the recent stimulus measures.

The US weekly export sales figures were fairly solid on corn at 0.75Mt, including 0.1Mt to China but mostly switched from unknown. Old crop wheat was disappointing at 82,000t and beans where net reductions of 92,000t were reported.  Much better new crop bean sales were reported, 0.3Mt, 264,000t to China mostly rolled from old crop. New crop wheat sales were over half a million tons, including 260,000t to China.  Sorghum sales were zero with yet another unknown sale confirmed as China but nothing new seen.

Saudi Arabia’s SAGO has made the next step in the gradual privatisation of its flour mills,  announcing last night that the sale of another mill to a UAE based investment group was finalised.

Argentina’s BA grains exchange cut their crop estimate by 1Mt for beans, with harvest rolling but recognising the yield impacts from the earlier dry weather.

Brazil’s CONAB also reported updated production figures pre-WASDE, adding just under 1Mt to corn and about 400,000t to beans.

Tunisia’s old crop wheat tender saw them book three boats around US$260 C&F average price from EU trading houses.

EU/Black Sea frost concerns are doing the rounds after this week’s cold snap – although forecast rains for the western EU are also helping outlooks there.

It’s USDA report day tomorrow and there’s exciting business to come.

Australia

Local markets continuing to pay some premiums for grain with the right logistics on the front end, but otherwise fairly quiet – still a question of freight and logistics domestically as we move into planting

BOM maps have firmed slightly for the far SW of WA but otherwise the majority of the wheatbelt there still holding 15-20+ mm forecasts into the weekend.

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