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Market Summary - Friday 18th August 2017

Compiled by Aaron Dolin

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OVERALL

  • The Russian supply glut continues to weigh on futures markets. Global equity markets sold-off in the wake of another global terrorist attack. The AUD weakened overnight to below US0.79.                                                                      

WHEAT 

Contract

CBOT (c/bu)

CBOT (AUD/t)

KCBOT (c/bu)

MGEX (c/bu)

Sept 17 (U)

414.00

-5.25

$   192.85

-1.31

414.25

-5.25

670.25

-3.25

Dec 17  (Z)

440.75

-6.25

$   205.31

-1.70

442.00

-5.00

684.25

-0.50

Mar 18  (H)

463.75

-5.75

$   216.02

-1.41

460.50

-4.75

684.50

+0.25

May 18  (K)

479.25

-5.25

$   223.24

-1.14

475.00

-5.00

674.75

+1.25

  • Despite strong export numbers wheat found itself sold off as the technical landscape continues to pressure prices lower.
  • The USDA reported weekly US wheat sales of 633.6kmt – well above the trades expectations of 450kmt.
  • The by-class breakdown:7kmt of hard red winter (Kansas-KCBOT); 36.2kmt of soft red winter (Chicago-CBOT); 216.7kmt of hard red spring (Minny-MGEX).
  • The wheat-corn feed spread (WU17-CU17) has come off over 60% in just six weeks, plummeting from 168c/bu to just 63.50c/bu.
  • Iraq opens up another tender for 50kmt of Australian/US wheat.

 

CORN

Contract

CBOT (c/bu)

Sept 17 (U)

350.50

-2.00

Dec 17 (Z)

364.25

-2.25

Mar 18 (H)

376.25

-2.00

  • Corn lower overnight on weakness in wheat and feed-spread pressure.
  • The USDA reported weekly US corn sales of 671.8kmt (new crop) – in-line with the trades expectations.
  • EU corn imports have now reached 1.7mmt, up a considerable 43% from this time last year.

 

OILSEEDS

Contract

CBOT Soybeans (c/bu)

ICE Canola (CAD/t)

Contract

MATIF Rapeseed (Euro/t)

Sept 17 (U)

930.25

+8.50

500.00

+7.30

Nov 17   (X)

366.25

-5.50

Nov 17 (X)

933.00

+7.75

504.50

+7.20

Feb 18   (G)

368.50

-5.25

Mar 18 (H)

949.50

+8.00

507.60

+7.00

May 18   (K)

370.00

-5.25

  • Strong Chinese demand keeps US beans ticking along, bucking the general bearish trend overnight to finish higher.
  • Lack of rains in states such as Iowa also supported bean prices overnight.
  • The USDA reported a 165kmt optional origin bean sale to China overnight.

     

OTHER

 

 

 

AUDUSD

0.7890

-0.0045

AUDCAD

1.0005

-0.0015

CRUDE (U)

47.09

+0.31

  • The AUD has come off overnight on the back of the overnight terrorist attack in Barcelona and commodity price weakness.
  • Our local S&P ASX200 index (^AXJO) closed 0.10% lower to 5,779 yesterday. Telstra got thumped after it revised its dividend policy, closing more than 10% lower (CommSec TV).
  • The US Dow (^DJIA) experienced its biggest one-day slide in three months as news of another terrorist attack hit global equity markets (CommSec TV).
  • The Baltic Dry Index (BDI) keeps marching higher, closing a further 40 points overnight to close out the session at 1,247.

 

SPREADS

 

Close

 

Close

 

Close

WZ7 - WU7

26.75

-1.00

KWU7 - WU7

0.25

0.00

MWU7 - WU7

256.25

+2.00

WH8 - WU7

49.75

-0.50

KWZ7 - WZ7

1.25

+1.25

MWZ7 - WZ7

243.50

+5.75

WK8 - WU7

65.25

0.00

KWN8 - WN8

-3.25

+1.00

MWH8 - WH8

220.75

+6.00

WU7- CU7

63.50

-3.25

KWU7 - CU7

63.75

-3.25

KWH8 - CH8

84.25

-2.75

 

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

Aaron Dolin

Local. Versatile. Reliable.

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