July 12, 2023 – Update

The comment

US farm markets were mostly higher on Tuesday. Corn prices faded their initial strength, but held onto 0.46% gains. Soybeans extended their gains by 1.10%. Soymeal took the lead and closed with 2.56% gains. Soybean oil cooled off from the sharp gains out of the weekend, giving back 1.07%. The wheat markets faded from early gains, but were still higher on the day. Chicago SRW indeed rose 2.21%, Kansas City HRW added 0.71%, and MGEX HRS climbed 1.62%. Traders spent Tuesday squaring positions ahead of this morning’s WASDE report. The market is expecting corn yields with a 176/77bu/ac type yield, down from 181.5bu/ac. Wire sources had private analyst Dr. Michael Cordonnier’s U.S. soybean yield estimate at 50.5 bpa – UNCH from his prior figure. The result was a lot of technical buying that pushed corn, soybeans and wheat higher. Wheat gains were even more robust amid ongoing geopolitical issues in the Black Sea region. In Europe grain prices rose on geopolitical fears and some disappointing crop results. Meanwhile rapeseed jumped on the wake of crude oil strength, the rise in soybeans and especially in Canadian canola, which reached a 4-month high in Winnipeg. Oil prices settled up 2% at 10-week high on weaker US dollar, rising demand forecasts. The Baltic Exchange’s main sea freight index in London edged 0.8% higher, on panamax and supramax gains. On Wall Street, US stock indexes closed moderately higher, on hopes that U.S. inflation news, will show a continued easing of price pressures. The DXI fell by -0.24% and posted a 2-month low, on lower US T-note yields, strength in stocks, and more Chinese economic support measures strengthened the yuan.

The markets

Chicago wheat Sep contract was up 14.2c/bu to 660.4c/bu;
Kansas wheat Sep contract was up 5.6c/bu to 817c/bu;
Minneapolis wheat Sep contract was up 13.6c/bu to 864c/bu;
MATIF wheat Sep contract, was up €3/t to €232.25/t;
ASX wheat Sep contract, was down A$1.8/t to A$381/t;
Black Sea wheat Aug contract was up $0.75/t to $234.5/t;
US DWI Cash (durum wheat index) was up 0.31c/bu to 792.73c/bu;
1CWAD (Canadian durum wheat) avg reg was up C$0.31/t to C$396.07/t;
EDW (EU durum) Sep contract, was down €2/t to €353.25/t;
Chicago corn Sep was up 2.2c/bu to 494.4c/bu;
MATIF corn Aug was up €2.75/t to €228/t;
Soybeans Aug contract up 16c/bu to 1471.4c/bu;
Winnipeg November canola contract was up C$5.7/t to C$787.10/t;
MATIF rapeseed Aug contract, was up €8/t to €458/t;
Brent crude Sep was up US$1.71 per barrel to $79.40;
WTI crude Aug was up US$1.84 per barrel to $74.83;
BADI (Baltic Dry Index) was up 8 points to 1032;
Dow Jones was up 317.02 points to 34.261,42;
S&P 500 was up 29.73 points to 4.439,26;
NASDAQ Composite up 75.22 points to 13.760,70;
US dollar index (Sep ’23) was down 0.239 points to 101.403;
AUD/USD firmer at US$0.6686;
USD/CAD weaker at $1.3230;
EUR/USD firmer at $1.1008;
USD/RUB weaker at ₽90.5069.

That’s all, thank you.
We wish you a nice day.

Author: Sandro F. Puglisi

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