Overnight futures markets:
As good as unchanged across the board in anticipation of the upcoming report.
- CBOT wheat down -0.5c to 426.75c,
- Kansas wheat up 1c to 427.5c,
- corn up 0.5c to 348.25c,
- Soybean up 2.5c to 998.5c,
- Winnipeg Canola up $C0.69 to $C520.8,
- Matif canola up €1.75 to €386.25.
- The Dow Jones up 6.13 to 23563.36 ,
- Crude Oil down -0.38c to 56.82c,
- AUD down to 0.76767c,
- CAD down to 1.2723c, (AUDCAD 0.97665)
- EUR down to 1.15942c (AUDEUR 0.662).
Chicago and Kansas wheat got off to a shaky start with early losses of US7c/bu and 8c/bu only to recover to close near their opening numbers. GASC returned to the party after purchasing 120k of Russian wheat at US$210/t as well as putting its hand up for an additional tender for the second half of December. In other news, India increased its wheat import tax from 10 per cent to 20pc.
The corn market followed wheat to lose 2.5c/bu before recovering to gain fractions closing at 348.25c/bu. The market is searching for direction which may be provided by the upcoming report.
As was expected, the bean market treaded water in a relatively tight range in anticipation of the upcoming report. The bean market is the big question mark with charters suggesting yields will be decreased. Tomorrow’s upcoming export sales are expected to reach 1.55 million bushels and in order to meet USDA expectations we need to see 725,000 bu.
Domestically the rainfall forecast hasn’t changed dramatically with all cropping areas of VIC expecting to be on the receiving end of 5-10mm over the next week. Cropping regions of QLD are forecast to see no rain over the upcoming eight days. Areas of the Eyre Peninsula are expecting upwards of 15mm.
Source: Lachstock Consulting
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