29/6/21 Prices

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An unusual night in US grain futures with a combination of technical squaring, buying, ahead of the US quarterly stocks report and relief / concern after recent heavy rain delivered good moisture to some dry location but flooding rain to others.
The row crops saw the most volatility, corn and soybeans closing sharply higher, dragging wheat higher. Strength in soybeans spilled over into the ICE canola contract resulting in C$30 moves higher for Nov21 through to May 22 contracts.
The higher canola futures were reflected in similar moves higher in cash bids out of SE Saskatchewan where a Dec 21 lift was valued at C$742 ex farm. A price roughly equivalent to AUD$840 port here.
For wheat Minneapolis spring wheat futures were the clear winner. Rainfall in the USA and Saskatchewan was scarce in the spring wheat and canola regions. While heavy falls pushed across Oklahoma, eastern Kansas, Missouri and the central corn belt states. These falls offering moisture to the summer crops but continued delays to the hard red winter wheat harvest.
Spring wheat values in SE Saskatchewan were again higher, jumping C$9.20 to C$328 XF, now a dollar better than durum. Cash bids for dark northern spring wheat out of the Pacific North West were also higher, jumping 25 – 30c/bu to FOB US$360 for 14% / Sept. A back of an envelope comparison would make that equivalent to about AUD$415 delivered Newcastle port, US basis is strong.
The weekly US crop progress report was out after the close. Corn rated 64% G/E (65% last week), Oklahoma HRW harvested 80%, Kansas 41%, good week on week progress. HRWW rated G/E 48% back 1%. 48% of the spring wheat is in head, G/E rated just 20% back -7%.

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