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Market Summary - Friday 23rd August 2019

Compiled by Hayley Hobbs

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OVERALL

 

  • Markets ended mixed despite relatively positive (wheat) to neutral (corn) export sales data. The AUD softened overnight on the back of disappointing manufacturing data from the US.

 

WHEAT

Contract

CBOT (c/bu)

CBOT (AUD/t)

KCBOT (c/bu)

MGEX (c/bu)

Sept 19 (U)

467.25

+4.75

$254.09

+3.58

393.25

+7.00

498.50

-3.75

Dec 19 (Z)

471.75

+3.75

$256.53

+3.05

404.25

+3.75

513.50

-1.50

Mar 20 (H)

477.75

+3.25

$259.80

+2.79

418.25

+3.00

526.25

-3.00

May 20 (K)

477.75

+3.25

$259.80

+2.79

418.25

+3.00

526.25

-3.00

 

  • Spring wheat was pressured lower due to expanding production in both the US and Canada, while the other two classes benefited from better than expected weekly export sales.
  • US weekly exports were nearly 600k this week, above market expectations.
  • Ukraine have exported just shy of 7mmt  of all grains (including 3.7mmt of wheat) since July 1st, up 2.3mmt from this time last year.

 

CORN & BARLEY

Corn

CBOT (c/bu)

Sept 19 (U)

363.25

+0.75

Dec 19 (Z)

371.00

+0.75

Mar 20 (H)

383.00

+0.50

May 20 (K)

383.00

+0.50

 

  • Corn was caught between good weather outlook and so-so export data.
  • US weekly exports totaled 421k which was within market expectations.
  • Saudi Arabia have issued a tender to purchase 780k of feed barley.
  • Lack of demand continues to be corn’s biggest issue with both exports and domestic use lagging. Nearly 40% of the US corn crop is used to make ethanol and its co-products which is why underwhelming ethanol margins and increasing exemptions on refineries is bad news for corn values.  

 

OILSEEDS   

Contract

CBOT Soybeans (c/bu)

Contract

ICE Canola (CAD/t)

Contract

MATIF Rapeseed (€/t)

Sept 19 (U)

856.00

-4.50

Nov 19 (X)

453.10

0.00

Nov 19 (X)

379.25

-1.75

Nov 19 (X)

868.75

-4.25

Jan 20 (F)

461.10

+0.60

Feb 20 (G)

380.00

-1.25

Jan 20 (F)

882.50

-4.25

March 20 (H)

468.10

+1.30

May 20 (K)

377.50

-1.75

 

  • Good weekly export sales weren’t enough to boost soybean values which instead finished lower on the back of technical selling and improving reports from the Pro Farmer field tour as they move through the US.
  • Soybean weekly export sales totaled 793k which was above expectations.
  • ICE Canola values were marginally higher, likely due to estimates that the next Canadian canola crop will be about 19mmt, 1.3mmt less than last year’s production.
  • A large piggery in Ukraine had to cull 100k pigs this week following the discovery of African Swine Fever at the facility.

 

OTHER

Contract

 

 

AUDUSD

0.6757

-0.0027

AUDCAD

0.8993

-0.0026

AUDEUR

0.6098

-0.0021

CRUDE (N)

55.35

-0.33

 

  • US manufacturing data has contracted for the fist time in 10 years, renewing concerns over global economic growth.
  • Economic concerns caused risk appetite to weaken overnight. The depreciation of the AUD was a byproduct of heightened risk sensitivity, as risk appetite has been driving the AUD recently.
  • Weak US data also weighed on oil values.

 

SPREADS

 

Close

Change

 

Close

Change

 

Close

Change

WU9 - WN9

4.50

-1.00

KWN9 - WN9

-74.00

+2.25

MWN9 - WN9

31.25

-8.50

WZ9 - WN9

10.50

-1.50

KWU9 - WU9

-67.50

0.00

MWU9 - WU9

41.75

-5.25

WH0 - WN9

10.50

-1.50

KWZ9 - WZ9

-59.50

-0.25

MWZ9 - WZ9

48.50

-6.25

WN9 - CN9

104.00

+4.00

KWN9 - CN9

30.00

+6.25

MWN9 - CN9

135.25

-4.50

 

Have a great day!

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