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Grain Market Summary - Thursday 20th September 2018

Compiled by Hayley Hobbs

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OVERALL

  • A weakening USD has seen the AUD rally to 0.7262 this morning. The softer USD also supported ag commodities, most of which finished higher on buying activity.

 

WHEAT 

 

Contract

CBOT (c/bu)

CBOT (AUD/t)

KCBOT (c/bu)

MGEX (c/bu)

Dec 18 (Z)

522.50

+12.00

$264.26

+4.64

526.25

+10.25

588.00

+7.75

Mar 19 (H)

540.25

+11.25

$273.24

+4.21

549.75

+12.00

601.25

+6.50

May 19 (K)

551.75

+10.25

$279.06

+3.67

563.00

+11.75

608.50

+5.25

July 19 (N)

555.00

+8.50

$280.70

+2.77

562.50

+10.50

614.50

+5.25

  • The recent decline in wheat values combined with a softer USD has finally begun to stimulate demand, which encouraged buying activity overnight.
  • Poor conditions in Australia, combined with unfavourable weather in Russia for both winter planting and spring harvest also supported values.
  • The funds joined in the buying activity, purchasing 7,500 contracts of wheat and adding to the strength in wheat.
  • Stats Canada satellite model has increased Canada’s wheat crop estimate from 29mmt to 31mmt, although it is unclear if the recent snow events have been taken into account.

 

CORN/ BARLEY

Contract

CBOT (c/bu)

Dec 18 (Z)

345.75

+2.50

Mar 19 (H)

358.00

+2.50

May 19 (K)

366.50

+2.50

July 19 (N)

373.00

+2.25

  • Strong export expectations and ethanol demand supported corn values overnight.
  • Weekly output of corn-based ethanol rose to 1.05million bbl/day according to the US Energy Information Administration.

 

OILSEEDS    

Contract

CBOT Soybeans (c/bu)

ICE Canola (CAD/t)

Contract

MATIF Rapeseed (Euro/t)

Nov 19 (X)

830.00

+16.00

487.00

+0.60

Nov 18   (X)

363.75

-2.00

Jan 19 (F)

843.75

+15.75

492.70

+0.10

Feb 19   (G)

364.50

-2.00

Mar 19 (H)

857.25

+15.75

497.60

-0.30

May 19   (K)

365.50

-1.50

  • China is rumoured to have bought Argentinean soybeans, while Argentina is supposed to have bought cheap US beans.
  • A softening USD was favourable for bean strength overnight.
  • Canada’s government reduced their canola production by over 1 million tonnes.

 

OTHER

Contract

 

 

AUDUSD

0.7262

+0.0037

AUDCAD

0.9386

+0.0007

CRUDE (V)

71.12

+1.27

  • Chinese Premier Li Keqiang said their currency would not be used as a weapon in the trade disputes, and as such there would be no devaluation of the Chinese yuan to in order to increase the competitiveness of Chinese exports.
  • The AUD strengthened on the back of weakness in the USD.
  • Crude oil values rose following the release of inventory data which detailed a lowering supply.

 

SPREADS

 

Close

Change

 

Close

Change

 

Close

Change

WH9-WZ8

17.75

-0.75

KWZ8-WZ8

3.75

-1.75

MWZ8 - WZ8

65.50

-4.25

WN9 - WZ8

29.25

-1.75

KWH9 - WH9

9.50

+0.75

MWH9 - WH9

61.00

-4.75

WK9 - WZ8

29.25

-1.75

KWK9 - WH9

11.25

+1.50

MWK9 - WK9

56.75

-5.00

WZ8 - CZ8

176.75

+9.50

KWZ8 - CZ8

180.50

+7.75

MWZ8 - CZ8

242.25

+5.25

 

Have a great day!

Thank you for reading. To subscribe, please send me an email at hhobbs@plumgrove.com with "Subscribe" in the subject line.

Hayley Hobbs

 

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