Thursday’s canola continued to strengthen. Spring wheat managed a small rise while all other markets settled lower.
- Chicago wheat September contract down US4.25c/bu to 618c;
- Kansas wheat September contract up 3.5c/bu to 588c;
- Minneapolis wheat September contract down 3c/bu to 805c;
- MATIF wheat September contract down €0.25/t to €199.75/t;
- Corn September contract was down 6c/bu to 536.75c;
- Soybeans September contract down 6.75c/bu to 1326c;
- Winnipeg canola November contract was up C$23.10 to $814;
- MATIF rapeseed August contract up €7.75/t to €518.75/t;
- US dollar index down 0.3 to 92.4;
- AUD weaker at US$0.743;
- CAD weaker at $1.254;
- EUR firmer at $1.185;
- ASX wheat July contract unchanged at $291/t;
- ASX wheat January 2022 up $1/t to $296/t.
USDA next crop production and WASDE reports will publish on 12 July.
Coronavirus is making new headlines yet again. Japan reversed a prior decision on the Olympics, and now is banning spectators and declaring a state of emergency in the country as cases of the virus increase there.
There’s still plenty of weather to play out for this growing season, and now the US NOAA Climate Prediction Centre has come out with a call for a probable La Niña next year, with the associated potential for poor crops in South America. Weather markets baby!
Speaking of which, rains forecast across the US corn belt are now pushing up towards 2-3″+ for this weekend. Fairly little is forecast though for western corn belt areas.
Despite the absence of any confirmed Chinese buying, which had been rumoured in yesterday’s moves on oilseeds, we did get a flash soybean meal sale of 122,000t new crop to Mexico.
Regular export sales won’t be out until tomorrow, holiday delayed like the other reports this week.
US weekly ethanol stocks were down 0.4 million barrels to 21.1, with the cut attributed to gasoline demand spiking over the 4 July weekend
Leading into next week’s USDA report, Brazil’s CONAB predicts the corn crop 93.4 million tonnes (Mt), down another 3Mt from their last estimate but still well above many private estimates sub-90Mt. They also called the bean crop at 135.9Mt, up slightly from previous.
Saudi Arabia’s SAGO is tendering for wheat. A reminder that they’re privatizing out of the barley business and opened that up last season for private imports, stopping their tendering process for barley.
Black Sea grain harvest is still pushing along with more reports of wheat trucks coming in, though most still are in barley mode.
Local markets firmed up a couple bucks the other day on wheat bids, about a tenner on canola. Values are supported a little this morning in general with the weaker $A.
Weekend rains for WA still forecast to bring a widespread inch for the wheat belt.
Source: Lachstock Consulting