Markets

Daily Market Wire 9 July 2020

Lachstock Consulting, July 9, 2020

Wheat values jumped sharply while oilseeds softened in overnight trading.

  • Chicago wheat September contract up US21.25c/bu to 516.5;
  • Kansas wheat September contract up 16c/bu to 456.75;
  • Minneapolis wheat September contract up 10.25c/bu to 523.25;
  • Corn September contract up 2.75c/bu to 346.25;
  • Soybeans September contract down 5.75c/bu to 890.75;
  • Winnipeg canola November contract down C$1.20/t at C$479.10;
  • MATIF wheat September contract up €2.25/t to €187;
  • MATIF rapeseed August contract up €3.25/t to €385;
  • Brent crude September contract up US$0.21 per barrel to $43.29;
  • Dow Jones index up 177 points to 26,067;
  • AUD higher at $0.6981;
  • CAD lower at $1.3517;
  • EUR higher at $1.1331.

Wheat and corn

Lots of little global imperfections are being grouped together to justify support for wheat values, and the question is whether the hotspots are large enough in aggregate to justify the spike.  In the short term, the market has moved to a “risk off” position, with more buyers than sellers as shorts cover out.  Russian harvest results are continuing to build as fieldwork starts moving north, and will continue to dominate the wheat discussion.  Yields in Russia’s central zones are expected to be better than the south’s. Even though southern results were expected to be poor, the confirmation has hurt sentiment and is driving some cuts to production ideas.  In the US, heat in the corn belt is of concern, with temperature maps promising little relief.  Heat by itself will not kill the corn crop, but with weather maps for parts of the central corn belt still holding drier, worries exist.

Australia

Local wheat markets were firmer on the boards yesterday, with offers through Victoria coming out of the woodwork and the buyers stepping up into the market to continue to chip away at positions on their books. We saw these wheat values rise by $4-5/t through Victorian bulk-handling sites. New-crop values also firmed throughout the day, up $1-2/t on wheat, while barley remain srelatively flat across the delivered zones. Canola markets remained unchanged in new and old crop. Hopes for rain are building in weather maps for eastern states, but it is a sit and wait game until it falls.

Source: Lachstock Consulting

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