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Market Summary - Monday 15th October 2018

Compiled by Hayley Hobbs

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OVERALL

  • Risk premiums re-entered the market on Friday, driving prices higher. The AUD remains above 0.71 this morning supported by strong iron ore values.

 

WHEAT 

Contract

CBOT (c/bu)

CBOT (AUD/t)

KCBOT (c/bu)

MGEX (c/bu)

Dec 18 (Z)

517.25

+9.25

$267.61

+5.82

524.25

+10.50

596.00

+6.50

Mar 19 (H)

537.50

+8.25

$278.09

+5.34

548.25

+10.25

602.25

+3.50

May 19 (K)

549.25

+7.75

$284.17

+5.11

560.50

+10.00

608.25

+3.25

July 19 (N)

555.50

+7.50

$287.40

+4.99

567.25

+10.00

614.00

+3.00

  • Short covering saw wheat values rally on Friday.
  • Without any new inputs, traders looked to ongoing stories like harvest delays in Canada, pressure on crops in Russia, Argentina and Australia, and the hope that US wheat exports will increase to spur on their buying activity.
  • GIWA released their latest crop report on Friday, estimating the WA wheat crop to come in just above 8mmt. They cited frost events in late August and mid-September and poor rainfall during this time as the reason for reducing WA’s production estimate by nearly 20%.
  • You can see more of the report here: http://www.giwa.org.au/2018

 

CORN & BARLEY

Contract

CBOT (c/bu)

Dec 18 (Z)

373.75

+4.50

Mar 19 (H)

385.75

+4.50

May 19 (K)

392.75

+4.25

July 19 (N)

397.75

+3.75

  • Corn closed higher as buying activity continued. Lowered corn prospects in the WASDE report is the main catalyst.
  • GIWA reduced their WA barley estimate by over 7% to 3.5 million for the state. They provided the same evidence for lowered barley prospects as they did for wheat.

 

OILSEEDS    

Contract

CBOT Soybeans (c/bu)

ICE Canola (CAD/t)

Contract

MATIF Rapeseed (Euro/t)

Nov 19 (X)

867.50

+9.25

494.70

-1.80

Nov 18   (X)

371.50

-0.50

Jan 19 (F)

881.75

+9.25

501.70

-0.60

Feb 19   (G)

379.25

+0.50

Mar 19 (H)

894.50

+9.50

508.30

+0.10

May 19   (K)

379.25

+0.50

  • Soybeans continued their buying activity post the WASDE report, spurred on by a lower production prospect.
  • Improving weather forecasts suggesting harvest may resume in some parts of Canada saw ICE values falter.
  • GIWA increased their canola production by 5.3% to 1.42million tonnes across WA.

 

OTHER

Contract

 

 

AUDUSD

0.7106

-0.0022

AUDCAD

0.9260

-0.0034

AUDEUR

0.6149

+0.0005

IRON ORE

70.58

+0.2300

CRUDE (X)

71.34

+0.3700

  • The Chinese economy is slowing, according to recently released GDP data for Q3. GDP growth fell from 6.7% in Q2 to 6.5% in Q3.
  • US equities remain firmly on the rollercoaster, closing higher on Friday.

 

SPREADS

 

Close

Change

 

Close

Change

 

Close

Change

WH9-WZ8

20.25

-1.00

KWZ8-WZ8

7.00

+1.25

MWZ8 - WZ8

78.75

-2.75

WN9 - WZ8

32.00

-1.50

KWH9 - WH9

10.75

+2.00

MWH9 - WH9

64.75

-4.75

WK9 - WZ8

32.00

-1.50

KWK9 - WH9

11.25

+2.25

MWK9 - WK9

59.00

-4.50

WZ8 - CZ8

143.50

+4.75

KWZ8 - CZ8

150.50

+6.00

MWZ8 - CZ8

222.25

+2.00

 

Have a great day!

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