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Market Summary - Thursday 16th August 2018

Compiled by Hayley Hobbs

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OVERALL

  • Ag commodities were lower across the board overnight as trade tensions and risk off sentiment weighed on markets. The AUD is relatively unchanged from yesterday.

                                                                                                         

WHEAT 

Contract

CBOT (c/bu)

CBOT (AUD/t)

KCBOT (c/bu)

MGEX (c/bu)

Sept 18 (U)

532.25

-9.50

$   270.35

 $    (4.94)

535.25

-10.50

583.50

-12.75

Dec 18 (Z)

551.75

-9.50

$   280.25

 $    (4.94)

562.75

-9.75

600.75

-12.50

Mar 19 (H)

574.25

-8.50

$   291.68

 $    (4.44)

586.25

-9.00

616.75

-11.75

May 19 (K)

584.25

-8.00

$   296.76

 $    (4.19)

598.25

-9.25

625.50

-9.75

  • Strength in the USD weighed on wheat values last night, reducing US wheat’s competitiveness on the global stage.
  • Favourable weather for the US Southern Plains where they grow their higher protein wheat also pressured values lower.
  • It is expected Russian authorities will meet next week to discuss their upcoming crop size. The trade is nervous about this meeting and any potential export sanctions to reduce Russian exports that might come from it. 

 

CORN

Contract

CBOT (c/bu)

Sept 18 (U)

361.50

-0.75

Dec 18 (Z)

376.00

-0.50

Mar 18 (H)

387.75

-0.25

May 18 (K)

394.75

0.00

  • Strong export estimates allowed corn to recover from its initial losses in the session to close only marginally lower.
  • The Buenos Aires grains exchange is reporting that 5.8 million hectares of corn will be planted there this year which is a record high.

 

OILSEEDS    

Contract

CBOT Soybeans (c/bu)

ICE Canola (CAD/t)

Contract

MATIF Rapeseed (Euro/t)

Sept 18 (U)

857.50

-10.75

504.10

-3.50

Nov 18   (X)

380.25

-1.25

Nov 18 (X)

869.00

-10.75

514.60

-3.60

Feb 19   (G)

378.75

-1.75

Jan 19 (F)

881.00

-10.75

514.60

-3.60

May 19   (K)

378.75

-1.25

  • July crush numbers for US soybeans have come in at their second highest number ever at 167.7 million tonnes. Unfortunately this was not enough to save beans from giving back their recent gains.
  • The weather is looking excellent for US soybean crops which, when combined with trade tensions, weighed on soybean values.
  • News that Russia is making 1 million hectares of farming land available to foreign investors had the trade discussing whether this could be a good alternative for the Chinese and their soybean supply issues given the US tariffs. The quality of the land available is under scruitany.

 

OTHER

Contract

 

 

AUDUSD

0.7234

+0.0003

AUDCAD

0.9514

+0.0064

CRUDE (U)

65.01

-2.03

  • The AUD is trading slightly above yesterday’s values this morning, despite testing the 0.72 barrier yesterday. Strong wages data for Australia released yesterday allowed the dollar to push back to its current level.
  • Keep an eye out for Aussie jobs data due out this morning. If the unemployment rate is lowered, there could potentially be a boost to the AUD in the near term.
  • The Turkish Lira gained 7% overnight, as local authorities attempt to mitigate the damage caused from recent trade tensions and doubt around Turkish debt.

 

SPREADS

 

Close

Change

 

Close

Change

 

Close

Change

WZ8 - WU8

19.50

0.00

KWU8 - WU8

3.00

-1.00

MWU8 - WU8

51.25

-3.25

WN9 - WU8

42.00

+1.00

KWZ8 - WZ8

11.00

-0.25

MWZ8 - WZ8

49.00

-3.00

WK9 - WU8

52.00

+1.50

KWH9 - WH9

12.00

-0.50

MWH9 - WH9

42.50

-3.25

WU8 - CU8

170.75

-8.75

KWU8 - CU8

173.75

-9.75

MWU8 - CU8

222.00

-12.00

 

Have a great day!

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