US farm markets were mixed, but mostly down this week.
Corn futures lost 2,69%, about half of what they had gained the previous week.
Soybeans trailed corn and wheat all week, with double digit daily losses both on Thursday and Friday.
Indeed, for the week, soybeans were down 3.5%.
Soybean meal was the only one to show signs of life, as was up 0.03% for the week.
Soy oil sank 4.1%.
The wheat complex which had printed some contract highs early in the week closed with MPLS spring wheat down more than 4% for the week, Chicago down 0.8% and KC down 0.9%.
Particularly, CBOT soft red winter (SRW) futures shed 6.3 cents closing the week to $7.67/bu.
KCBT hard red winter (HRW) futures were down 7 cents to end at $7.79/bu.
MGE hard red spring (HRS) futures lost 42.8 cents to close at $10.10/bu.
CBOT corn futures were down 15.3 cents to $5.53/bu.
CBOT soybean futures fell 43.5 cents to close at $11.92/bu.
Meantime, US export sales improved this week, but high futures prices had curbing export demand overall and leading to slightly softer basis in both the Gulf and Pacific Northwest (PNW).
Thus, as of November 5, 2021, US HRS 13,5% prot, for Dec. ’21 was valued at $437.06/ mt FOB PNW (down $19.56/mt from last week).
FOB Gulf HRW 11.5 pro was valued at $360/mt (down $7/mt from last week).
On macro markets, oil prices rose around 3% on Friday, staging a partial recovery after OPEC+ producers rebuffed a U.S. call to raise supply and instead maintained plans for a gradual return of output halted by the pandemic.
Thus Brent crude rose $2.20 or 2.73% to $82.74 a barrel by the close, after falling nearly 2% on Thursday.
U.S. oil gained $2.46 or 3.12% to $81.27 a barrel, having declined 2.5% in the previous session.
Both both benchmarks, however, declined this week, for the second straight week.
Indeed, Brent was down -$0.98 per barrel or -1.17% for the week.
U.S. oil headed for a decline this week of 2.75%.
The Baltic Dry Index (BDI), an assessment of the average cost to ship raw materials such as grains, coal, and iron ore, decreased 23% on the week to end at 2,715.
On equity markets, meantime, on Friday finished the week higher, with the S&P 500, Dow Jones Industrials, and Nasdaq 100 all posting new all-time highs.
In fact, the S&P 500 Index on Friday closed up +0.37%, the Dow Jones Industrials Index closed up +0.57%, and the Nasdaq 100 Index closed up +0.08%.
Thus, the Dow Jones Industrial Average was up 203.72 points at 36,327.95, the S&P 500 was up 17.47 points, at 4,697.53, and the Nasdaq Composite was up +31,28 points, closing at 15.971,59, fater scaled the 16,000 mark for the first time.
For the week, the S&P 500 was up +86,91 points or 1,88%, the Dow Jones was up +494,30 or 1,38%, the Nasdaq Composite was up +430,33 points or 2,77%.
The U.S. Dollar Index increased from last week’s 93.78 to close at 94.63.
In Canada, as of November 01, 2021 Canadian wheat prices for FOB delivery were (Cdn$/mt):
– for the N1 class CWRS 13.5% – $538.67, up $10.18 per tonne;
– for the N2 class CWRS 13.0% – $529.59, up $10.20/t;
– for the N3 CWRS – $441.43, up $9.90 ;
– for the N1 CWAD – $834.35, down $7.78 per tonne.
(1USD=Cnd$1.246).
In South America, as of November 04, Argentina Wheat Grade 2 export price, (Up River) was at $314, up $7 from last week.
Argentina corn feed was down $4 for the week, closing at $250.
Brazilian corn feed (Paranagua) was at $262, down $9 from past week.
Argentina barley feed, was up $10 from last week, valued at $285.
Argentina soybean fell $8 to close at $536.
Brazilian soybean tumbled $16 finishing the week at $498.
On European market, prices were mixed, but mostly higher.
Indeed, Matif December wheat futures gained 4.5 euros from last week, closing at €287.75/t.
Matif corn January futures shedded 3 euros to close the week at €238.5/t.
Matif rapeseed November futures, rose 6.75 euros, ending the week at €685/t.
Nov-21 UK feed wheat futures fell £0.7 from past week, closing at £213.25/t.
Meantime, as of October 14, FOB prices in US dollar for French wheat with 11.5% protein and Nov. delivery, were at $ 339/mt, up $4/mt from last week.
French durum wheat, FOB La Pallice/ Port la Nouvelle, not quoted this week.
Spanish durum wheat Sevilla (DepSilo), closed at $623.7/mt, up $8.9 from prior week.
Italian durum wheat Bologna (Delivered to First costumer), valued at $627.16/mt, up €3.08/mt.
Corn delivered Bordeaux Spot – July 2021 basis was at $286.44 per tonne, down $0.19 from last week.
FOB Rhin Spot – July 2021 basis was at $291.06 per tonne, down $4.82 week on week.
Feed barley delivered Rouen – July 2021 basis was at 299.14$/t, up $6.73.
Malting barley FOB Creil Spot – July 2021 basis was at $392.7 per tonne, up 2.04$ from past week.
Rapessed FOB Moselle Spot – Flat – 2021 harvest was at 793.48$/ton, up $20.25 compared to prior week.
Standard sunseed delivered St Nazaire Spot – Flat – 2021 harvest was up $5.28 from last week at $721.87 per tonne.
As of November 01, Nov. German with 12.5 pro wheat closed at $336.40, up $5.40/mt.
Nov. Baltic with 12.5 pro wheat was at $339.90/mt, up $8.30/mt.
(EUR/USD=> US$1.155).
Russian wheat export prices were up again last week.
According to the IKAR, indeed, Russian wheat with 12.5% protein loading from Black Sea ports for supply in the first half of November was valued at $317 a tonne free on board (FOB) at the end of last week, up $5 from the previous week.
Meantime, prices for supply in the second half of November are at $324.
According to SovEcon, wheat rose by $9 to $325 a tonne.
Barley jumped by $12 at $285 a tonne, meantime.
Domestic 3rd class wheat, European part of Russia, excludes delivery was valued at 14,850 roubles/t ($208.7) -125 rbls compared to last week (Sovecon);
Sunflower seeds were at 37,875 rbls/t -375 rbls (Sovecon);
Domestic sunflower oil was at 88,000 rbls/t +325 rbls (Sovecon);
Sunflower oil export price according to Sovecon was at $1,355/t -$55;
Sunflower oil export price according to IKAR quoted at $1,360/t -$40;
Soybeans were at 50,300 rbls/t -500 rbls(Sovecon);
White sugar, Russia’s south was at $635.3/t +$1.4 (IKAR).
($1 = 71.44 roubles).
In Australia, indicative delivered prices in Australian dollars per tonne were mostly lower due to harvesting pressure:
Barley Downs: (Nearby) $270 up $10 – (January) $285 up $15;
Wheat Downs: (Nearby) $340 steady – (January) $340 down $10;
Sorghum Downs: (Nearby) $315 up $5 – (January) $300 up $10;
Barley Melbourne: (Nearby) $275 down $15 – (January) $285 down $11;
Wheat Melbourne: (Nearby) $323 down $49 – (January) $330 down $28.
(AUD/USD=> US$0.740).
Watching next week market, we’ll see USDA Export Inspections on Monday morning and the Crop Progress report in the afternoon.
Tuesday will feature the monthly USDA Crop Production and WASDE reports.
On Wednesday EIA will also put out ethanol production and stocks data.
On Thursday FAS will release their weekly Export Sales report.
Author: Sandro F. Puglisi
