July 18, 2023 – Update

The comment

US farm markets closed mostly lower on Monday. Corn prices dropped 1.43%. Soybeans picked up 0.25% thanks strength in soymeal which closed 2.50% higher, while soyoil faded 0.45% into the red. The wheat complex dropped through all the three markets, settling near their lows for the day. Chicago SRW indeed was down 1.17%, after Sep seeing a 38 cent range on the day. Kansas City HRW went home with 1.66% losses. Minneapolis HRS held relatively firm, closing with 0.68% losses. Ukraine Black Sea grain deal, has officially expired, after Russia refused to renew it. That should have been bullish news both for corn and wheat prices, but markets’ reaction suggest that it may have already been priced in. Lackluster US weekly export inspection data, weighed even more on the markets. In Europe, grain and oilseed prices rose, on concern about tighter supplies after Russia withdrew from Black Sea agreement, although gains were capped by strength in euro and large Russian supplies. Meanwhile, European durum wheat jumped more than 6% higher, as Canada still suffering from a marked water deficit especially in Saskatchewan. Oil prices dropped by more than 1.5% on weaker than expected Chinese economic growth, and the partial restart of halted Libyan output. The Baltic Exchange’s main sea freight index in London slipped 1.6%, on weaker vessel demand. On Wall Street, US stock indexes closed higher on lower bond yields and positive comments from Yellen. The DXI fell by -0.08%, as hawkish comments from ECB Governing Council member Nagel pushed the euro higher, while lower US T-note yields weighed on the dollar.

The markets

Chicago wheat Sep contract was down 7.6c/bu to 653.60c/bu;
Kansas wheat Sep contract was down 13.6c/bu to 815.20c/bu;
Minneapolis wheat Sep contract was down 6c/bu to 878.2c/bu;
MATIF wheat Sep contract, was up €0.5/t to €232.25/t;
ASX wheat Sep contract, was up A$11/t to A$388.5/t;
Black Sea wheat Aug contract was down $0.25/t to $233.25/t;
US DWI Cash (durum wheat index) was up 15.12c/bu to 827.19c/bu;
1CWAD (Canadian durum wheat) avg reg was up C$3.79/t to C$405.85/t;
EDW (EU durum) Sep contract, was up € 22.25 to €382.75/t;
Chicago corn Sep was down 7.2c/bu to 499.2c/bu;
MATIF corn Aug was up €1.25/t to €234.5/t;
Soybeans Aug contract up 3.6c/bu to 1484c/bu;
Winnipeg November canola contract was up C$9/t to C$829.80/t;
MATIF rapeseed Aug contract, was up €4/t to €469.5/t;
Brent crude Sep was down US$1.37 per barrel to $78.50;
WTI crude Aug was down US$1.27 per barrel to $74.15;
BADI (Baltic Dry Index) was down 17 points to 1073;
Dow Jones was up 76.32 points to 34.585,35;
S&P 500 was up 17.37 points to 4.522,79;
NASDAQ Composite up 131.25 points to 14.244,95;
US dollar index (Sep ’23) was down 0.076 points to 99.529;
AUD/USD weaker at US$0.6816;
USD/CAD weaker at $1.3199;
EUR/USD firmer at $1.1231;
USD/RUB firmer at ₽90.3435.

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

Author: Sandro F. Puglisi

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