US farm markets were mixed, but mostly higer to start the week.
Corn prices were unchanged after a somewhat choppy session.
Soybean prices grabbed double-digit gains moving 1.25% higher, thanks the strong demand for biodiesel and vegetable oils.
All wheat complex continued to be higher on tightening global supplies.
Thus, spring wheat contracts firmed 1.5%, while winter wheat contracts were up around 0.5%.
On macro markets, oil prices edged lower on this morning despite analysts said prices were set to sustain a rally driven by strong demand in the United States.
China’s red-hot power and coal markets have cooled somewhat after government intervention, meantime.
However, energy prices remain elevated worldwide as temperatures fall with the onset of the northern winter.
In this context, Brent crude was down 5 cents at $85.94 a barrel by 06:31 GMT, after gaining 0.3% on Monday.
U.S. oil dropped 12 cents to $83.64 a barrel, having finished 0,26% higher the previous session.
On the financial side, the Dow Jones Industrials and S&P 500 closed at record highs on Monday.
Tesla, which jumped 12.66% and breached $1 trillion in market capitalisation, also provided the biggest boost to the S&P 500 and the Nasdaq.
U.S. President Joe Biden on Monday held out hope for an agreement on his major spending plans before attending a climate summit in Scotland, while the White House said Democratic negotiators were closing in on a deal.
Consequentially, the Dow Jones Industrial Average rose 64.13 points, or 0.18%, to 35,741.15, the S&P 500 gained 21.58 points, or 0.47%, to 4,566.48 and the Nasdaq Composite added 136.51 points, or 0.9%, to 15,226.71.
Meantime, Asian stocks largely rallied on this morning, following Wall Street’s record highs, though fresh worries about China’s property sector weighed on investors’ sentiments.
Thus, MSCI’s gauge of Asia Pacific stocks outside Japan rose 0.15%.
The Nikkei closed 1.8% higher at 29,106.01.
China stocks edged up led by information technology stocks, while sustained worries over a planned pilot real estate tax scheme weighed on sentiment.
Thus, the CSI300 index rose 0.1% to 4,985.23 at the end of the morning session, while the Shanghai Composite Index gained 0.1% to 3,612.88.
The Hang Seng index dropped 0.4% to 26,028.94.
The Hong Kong China Enterprises Index lost 0.8% to 9,251.00.
Coming back on grains market, more rains will be moving through the Midwest later this week.
The corridor along the Mississippi River could see the highest totals, with some areas likely to receive 1.5” or more between today and Thursday, per the latest 72-hour cumulative precipitation map from NOAA.
The agency’s 8-to-14-day outlook predicts below-average temperatures for the eastern half of the U.S. between November 1 and November 7, with drier-than-normal conditions likely for most of the country.
Meantime, in yesterday’s US crop progress figures winter wheat planting lifted to 80pc.
Harvest progress in corn is 66pc, soybean harvest 73pc and milo harvest 71pc.
All about as expected, a part the first crop rating on winter wheats, posted at only 46% as good to excellent, below operators’ expectations.
On the other hand, US regular weekly export inspections had corn 0.5Mt, soybeans 2.1Mt, three quarters of which was to China, wheat just 0.14Mt and 0.080 milo of which 0.071Mt to China.
As we can see, corn export inspections were disappointing, tumbling 48% from a week ago.
Soybean export inspections saw week-over-week reductions of around 14% but still turned in a strong performance.
Wheat export inspections continued to shift fractionally lower week-over-week.
In this context, corn basis bids were steady to mixed across the central U.S., tumbling as much as 21 cents lower at an Illinois river terminal while firming as much as 5 cents at an Indiana ethanol plant.
Soybean basis bids tilted 15 cents lower at an Illinois river terminal while holding steady elsewhere across the central U.S..
From South America, in Brazil soybean plantings are progressing rapidly with an estimated total area sown around 38% according to AgRural.
According to the Safras & mercado consultancy, farmers have planted 36% of their intended soybean acres for the 2021/22 season through October 22.
That’s well above the historical average of 27%.
Corn sowing for the first harvest would be achieved at 64%, meantime.
More favorable conditions, according to the Inter-Brokerage have seen the Safra sowing maize (corn first crop) are 57%, against 43% last year, and in Parana, a of key production states, seedlings are 88% done with very good growing conditions.
Most entities are expecting record-breaking production this season, barring any major weather calamities.
Meantime, Brazilian farmers face the same challenges as their U.S. counterparts regarding high fuel prices and rising input costs.
On European market, Euronext started its week with a further increase in wheat despite a rather stingy session in terms of information, still on the basis of tight fundamentals.
Corn, on its part, slowed down under the effect of harvest pressure and the excellent yields reported both in Western Europe and the Black Sea.
Indeed, according to the European Commission, the average corn yield for the EU would be 7.79 t / ha against 7.76 t on average 5 years.
Rapeseed, meanwhile, still displays as much firmness.
The oilseeds were driven by the rebound in palm oil on the Kuala Lumpur Stock Exchange, as well as the strength of oil and soybeans .
Canola (Canadian GM rapeseed) was also on the rise.
From the Black Sea basin, weather maps are continuing to attract attention.
There is a better outlook for parts of Ukraine into early November, but still next to nothing for the Russian winter wheat areas.
Meantime, according to the Russian Minister of Agriculture, winter wheat sowing is estimated at 17.0 million hectares against 17.9 last year.
Some analysts have a first production estimate of 80 million tonnes for next year, including areas and an average yield.
Consequently, there was a slight decline in wheat prices across the Black Sea basin on Monday.
As for corn, meantime, prices remain firm in Ukraine for close deliveries, while there has been some relaxation in the remote area, a consequence of the delay in harvesting sites.
From Australia, weather maps still are expanding the east coast rain forecast for northern NSW later this week. Rain forecast is shrinking down south, excluding the Western Districts in Victoria.
The extended run maps remain very wet across the coast, forecasting a widespread 2″ or so.
On the international scene, demand remains very strong and is drastically drawing on reduced stocks at the major exporters.
Pakistan is buying 90,000 t of wheat.
Morocco suspended duties on wheat import from the start of November.
Argentina, whose wheat production is expected to be around 20 million tonnes, could compete with French origins in the Maghreb.
Freight costs are becoming essential in competitiveness.
We wish you a good day.
