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Market Summary - Tuesday 12th December 2017

Compiled by Aaron Dolin

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OVERALL

  • The horror show continued overnight with all complexes closing lower. Just to add a bit more pressure to Ag values, tonight’s WASDE isn’t expected to print anything supportive either. The AUD at US0.7530.                                                                                          

WHEAT 

Contract

CBOT (c/bu)

CBOT (AUD/t)

KCBOT (c/bu)

MGEX (c/bu)

Mar 18  (H)

413.50

-5.50

$202.42

 $    (2.69)

412.75

-5.25

608.75

-2.50

May 18  (K)

427.25

-5.00

$209.15

 $    (2.45)

426.00

-5.00

617.25

-2.50

July 18  (N)

441.50

-4.25

$216.13

 $    (2.08)

442.50

-4.50

621.75

-2.25

Sept 18 (U)

456.00

-3.75

$223.22

 $    (1.84)

458.00

-4.50

619.00

-2.25

  • Chicago and Kansas have now printed fresh contract lows in the past three consecutive sessions. Minneapolis couldn’t find support either as all wheat futures again fell over.
  • The USDA reported weekly US wheat export inspections of 316.8kmt – disappointing the trade.
  • Proof just how much US producers have been struggling in recent years due to price erosion, a USDA report shows Kansas farmers received an average of just US$3.20/bu for the 2016 harvest, down from the US$6.07/bu just two years earlier, as cheaper Russian wheat and poor protein levels has seen basis plummet.  
  • The Russian Ag Ministry has reported Russian wheat exports have increased 26.7% year-on-year to 17.63mmt, as the country continues to move its record inventory.
  • Ukraine’s Agricultural ministry estimates the country has now harvested 26.1mmt of wheat in 2017/18.

 

CORN

Contract

CBOT (c/bu)

Mar 18 (H)

349.00

-3.75

May 18  (K)

357.25

-3.75

July 18  (N)

365.75

-3.50

  • US corn values closed lower on weakness from the wheat complex and position trading ahead of tonight’s WASDE report.
  • The USDA reported weekly US corn export inspections of 658.4kmt – in-line with the trades expectations.
  • The USDA reported a 110kmt US corn sale to Mexico overnight, for delivery early next year.

 

OILSEEDS    

Contract

CBOT Soybeans (c/bu)

ICE Canola (CAD/t)

Contract

MATIF Rapeseed (Euro/t)

Mar 18 (H)

994.00

-7.50

509.90

-3.70

Feb 18   (G)

362.50

-2.25

May 18  (K)

1005.25

-7.00

516.80

-3.80

May 18   (K)

365.50

-1.75

July 18  (N)

1014.50

-6.50

520.30

-3.70

Aug 18   (Q)

356.75

-1.50

  • The threat of a bigger US bean carryout in tonight’s WASDE caught markets off-guard overnight, sending bean futures lower.
  • The USDA reported weekly US bean export inspections of 1.23mmt – disappointing the trade.
  • The USDA also reported a 132kmt US bean sale to an ‘unknown’ destination overnight.  

 

OTHER

 

 

 

AUDUSD

0.7533

+0.0027

AUDCAD

0.9686

+0.0039

CRUDE (F)

57.99

+0.63

  • The AUD edged slightly higher in overnight trade with base metal prices strengthening and general USD weakness.
  • The ASX200 (^AXJO) closed higher again yesterday but could not hold above 6,000, closing out the day at 5,998 as energies and mining stocks had a win (CommSec TV).
  • All US equity markets closed higher yesterday and were all able to regain early losses, with the Dow Jones actually closing at another record high (CommSec TV).

 

SPREADS

 

Close

 

Close

 

Close

WK8 - WH8

13.75

+0.50

KWH8 - WH8

-0.75

+0.25

MWH8 - WH8

195.25

+3.00

WN8 - WH8

28.00

+1.25

KWK8 - WK8

-1.25

0.00

MWK8 - WK8

190.00

+2.50

WU8 - WH8

42.50

+1.75

KWN8 - WN8

1.00

-0.25

MWN8 - WN8

180.25

+2.00

WH8 - CH8

64.50

-1.75

KWH8 - CH8

63.75

-1.50

KWK8 - CK8

68.75

-1.25

 

Have a great day!

Aaron Dolin

Local. Versatile. Reliable.