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Market Summary - Thursday 21st June 2018

Compiled by Aaron Dolin

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OVERALL

  • US futures markets took a breather overnight following the week of heavy losses. The AUD at US0.7370 this morning.                                                                                                 

WHEAT 

Contract

CBOT (c/bu)

CBOT (AUD/t)

KCBOT (c/bu)

MGEX (c/bu)

July 18  (N)

488.25

+10.50

$   243.32

$ 5.78

488.75

+5.75

552.75

+3.25

Sept 18 (U)

499.25

+9.75

$   248.81

$  5.42

505.75

+6.75

563.25

+2.75

Dec 18 (Z)

517.00

+7.75

$   257.65

$  4.45

528.50

+5.75

577.75

+2.50

Mar 19 (H)

534.00

+6.25

$   266.12

$  3.72

545.50

+4.50

592.50

+2.00

  • Wheat values consolidated overnight following the recent spate of heavy selling. The quality spread is now almost non-existent with the Kansas-Chicago July now at just US0.50c/bu!
  • The Agricultural Policy and Food Ministry for Ukraine expects the country to harvest 60mmt of total grains this season – which would around the same total as last year.
  • Japan has opened another tender for a further 91kmt of optional-origin milling grade wheat, for an August shipment.
  • Thailand has opened another tender for 55kmt of feed wheat, also for an August shipment.
  • Tomorrows USDA reported is expected to show weekly US wheat export sales at around 300kmt. 543kmt was recorded this week last year.

 

CORN

Contract

CBOT (c/bu)

July 18  (N)

354.25

+0.50

Sept 18 (U)

363.75

+0.50

Dec 18 (Z)

375.75

+0.25

  • Bargain buying again propped corn values up overnight.
  • Many market analysts now believe corn values are cheap compared to historical values and current market setup.

 

OILSEEDS    

Contract

CBOT Soybeans (c/bu)

ICE Canola (CAD/t)

Contract

MATIF Rapeseed (Euro/t)

July 18  (N)

889.50

+0.50

519.40

+1.10

Aug 18   (Q)

349.75

+2.25

Sept 18 (U)

900.25

0.00

508.30

+1.90

Nov 18   (X)

357.50

+2.00

Nov 18 (X)

910.50

-0.50

519.20

+2.20

Feb 19   (G)

361.25

+2.25

  • Limited US-China trade war commentary saw investors take-5 overnight following the frantic antics of the previous session.   
  • Brazilian bean values are now trading at more than a 10% premium to US values as the ongoing trade war issues and local logistical problems push values higher.

 

OTHER

 

 

 

AUDUSD

0.7372

-0.0018

AUDCAD

0.9811

-0.0004

CRUDE (N)

66.22

+1.15

  • The AUD remained under pressure overnight as US bonds yields lifted. General commodity price weakness also added to the downward price pressure.
  • The ASX200 (^AXJO) had a remarkable day yesterday, surging a further 1.2% higher to close out the session on a 10-year high of 6,172, driven by strong gains in the banking sector (CommSec TV).
  • The Baltic Dry Index (BDI) closed a further 46 points lower overnight to finish out the session at 1373.

 

SPREADS

 

Close

Change

 

Close

Change

 

Close

Change

WU8 - WN8

11.00

-0.75

KWN8 - WN8

0.50

-4.75

MWN8 - WN8

64.50

-7.25

WZ8 - WN8

28.75

-2.75

KWU8 - WU8

6.50

-3.00

MWU8 - WU8

64.00

-7.00

WH9 - WN8

45.75

-4.25

KWZ8 - WZ8

11.50

-2.00

MWZ8 - WZ8

60.75

-5.25

WN8 - CN8

134.00

+10.00

KWN8 - CN8

134.50

+5.25

KWU8 - CU8

142.00

+6.25

 

Grain Trade Australia Grower Training and Development Program

Grain Trade Australia is currently offering the opportunity for two growers from each state to attend workshops on various units available through the Diploma of Grain Management. As a member of GTA, Plum Grove is able to nominate growers to participate. If farming is your main income stream and you feel as though you would benefit from exposure to workshops on post-farm aspects of the grain supply chain and grain marketing, please let Plum Grove know via email. For further information, please visit the GTA website. Expressions of interest due by 20th June 2018.

 

Have a great day!

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