After a weekend extended by Independence Day, the American markets have reopened with a big sell-off in the face of the onset of rains and a notable cooling of temperatures in the North of the United States and in Canada.
All commodity markets, indeed, fell on Tuesday, with grains/oilseeds that crumbled between about 4pc and 8pc.
Chicago wheat was down 26 3/4¢; KC -35.5¢; Minny -45.5, Matif -2.25€.
Corn was off forty cents (limit); soybeans was down -95 1/4¢;
Matif rapeseed fell 16€; Winnipeg was down -$30 (limit).
On macro markets, oil prices steadied on this morning after a steep drop in yesterday’s session, following the cancellation of talks among OPEC+ producers that raised the prospect that the world’s major crude exporters will turn on the taps to gain market share.
In fact, Brent crude was up 3 cents at $74.56 a barrel by 0115 GMT, after slumping more than 3% on Tuesday.
U.S. oil was up 7 cents at $73.44 a barrel, having declined by more than 2% in the previous session.
Meantime on Wall St., the Dow faded 209 points lower to 34,576 over some concerns that economic recovery may face a relative slowdown as 2021 progresses after ramping up quickly earlier this year.
The U.S. Dollar firmed slightly.
Coming back on grains market, weekly crop conditions report was released after the market closed for the day.
It had been delayed a day by the holiday weekend.
The corn crop was rated 64pc good-to-excellent (G/E), unchanged, beans 59pc G/E was down 1pc and spring wheat at 16pc G/E was down 4pc compared with previous week.
Milo/sorghum crop conditions were rated 72pc G/E.
Winter wheat harvest progress was reported 45pc complete, up from 33pc last week.
The regular weekly export inspections reports, also delayed by the weekend, had 1.2 million tonnes (Mt) corn exported, 0.2Mt beans and 0.26Mt wheat.
As we can note corn export inspections moved nearly 20% higher from a week ago.
Soybean export inspections nearly doubled its volume from a week ago.
Wheat export inspections saw a modest retreat, meantime.
There were no milo boats reported, only some overland tons to Mexico.
In this context, corn basis bids were largely steady to soft, swinging as much as 30 cents lower at an Iowa river terminal. An Indiana ethanol plant bucked the overall trend after firming 10 cents higher.
Soybean basis bids were mixed at two interior river terminals and fell 15 cents at an Indiana elevator while holding steady elsewhere across the central U.S..
On European market, Euronext was carried down by the fall of Chicago.
Rapeseed gave up a lot of ground yesterday for the second straight day in the wake of canola.
However, volatility remains largely in order and quotations on Euronext remain posted above the threshold of € 500 / t.
Meantime, the European Union concluded the 2020/21 marketing year with corn imports totaling 573.2 million bushels.
That finalized a year-over-year decline of 25.9%.
European Union soybean imports concluded the 2020/21 marketing year with imports totaling 564 million bushels, trending fractionally lower from a year ago.
EU soymeal imports were down moderately year-over-year, while EU canola imports saw moderate year-over-year gains.
European Union soft wheat exports concluded the 2020/21 season with total sales of 938.1 million bushels, tracking 26.6% below last year’s pace.
EU barley exports were down slightly year-over-year, with 330.7 million bushels.
In France, it is the quotations on the physical market according to qualitative criteria that attract attention, as a consequence of the risk of not reaching the thresholds required to meet the specifications of importers.
This is particularly the case with feed barley with great disparities depending on whether the specific weight is less than 62 kg / hl or not.
From Black Sea basin, weather maps still have a few more showers forecast across parts of Ukraine and a little bit of southern Russia, but otherwise the forecasts are still skewing warmer/drier across the next two weeks as harvest ramps up.
The harvest pressure that plagued feed barley prices in the Black Sea area over the past week is gradually spreading to wheat.
Indeed, over the last 7 days, the price of Black Sea wheat on a FOB basis has dropped by around fifteen dollars.
Both Romania and Ukraine are preparing to record record wheat production volumes.
From the middle Kingdom, China’s grain stockpiler, Sinograin, is planning another auction of imported corn that was originally sourced from the United States and Ukraine.
The total amount of grain for sale is more than 5.1 million bushels, and the auction will be held this Friday.
From Australia, local markets saw wheat/barley very quiet yesterday, bids just a touch softer, though they are looking to be under some pressure today with the board collapse.
Canola took a hit to the nose yesterday with the board moves, down some A$20-30/t track price, and expecting more weakness today.
Old crop cash markets remain firm with prompt needs popping up to fill export and domestic sales.
WA rains starting to push to an inch in parts of the Midlands as the storm moves inland.
BOM forecasts still calling for accumulations of a solid inch across the wheat belt, between yesterday/today’s rains and this weekend’s forecast second wave.
Internationally, the decline is used to launch a new call for tenders.
Algeria iussed a tender with loads are to be distributed throughout the month of August.
Jordan purchased 60,000 t of hard milling wheat from optional origins in an international tender that closed yesterday.
The grain is for shipment in February.
Jordan bought of hard quality wheat, optional origins.
Turkey issued an international tender to buy 395,000 t of milling wheat of milling wheat from optional origins that closes July 13.
The grain is for shipment during the second half of August.
Japan issued a regular tender to purchase 4.0 million bushels of food-quality wheat from the United States, Canada and Australia that expires later this week.
Of the total, 53% is expected to be sourced from the U.S. The grain is for shipment in September.
Thailand issued an international tender to purchase 8.5 million bushels of animal feed wheat from optional origins that closes tomorrow.
The grain is for shipment starting in August.
South Korea purchased around 573,000 bushels of GMO-free soybeans for food use in an international tender that closed yesterday.
The grain is for arrival between August 5 and November 30.
Have a good day.
