September 5, 2023 – Market Focus

Good morning, Farmer Family …

Main Markets

US and Canadian markets were closed on Monday, in observance of the federal Labor Day holiday.
The CFTC weekly report showed large speculators trimming their net short position in Chicago corn futures in the week ending Aug. 29.The report also showed that non-commercial traders, a category that includes hedge funds, increased their net short position in CBOT wheat and raised their net long position in soybeans.
This morning Chicago wheat prices rose, as expectations of lower output in Australia underpinned the market.
Corn and soybeans rose with expectations of dry weather in the U.S. Midwest likely to hit yields.
South America
According to AgRural, Brazilian farmers had harvested 88% of the safrinha area planted, by Aug. 31.
AgRural also said that 13% of the areas projected for the center-south’s first 2023/24 corn crop had been planted by last Thursday.
Recent rainfall over Argentina’s agricultural heartland has brought significant relief to the wheat crop in particular, raising hopes for a good season after continued harsh droughts which caused huge losses in the 2022/23 season, the Rosario grains Exchange (BCR) said Monday.
Europe & UK
European wheat prices drifted down, hitting its lowest in about seven weeks.
French export activity is still focused on barley shipments to China.
According to port data compiled by LSEG, a light wheat loading programme in France, saw a third vessel for Colombia this season.
Drier weather over the past two weeks has allowed this year’s UK harvest to make good progress, according to AHDB’s latest report.
Turkish President Tayyip Erdogan said after talks with Russia’s Vladimir Putin on Monday that it would soon be possible to revive the grain deal.
He also said Ukraine needs to soften its negotiating position against Russia and export more grain to Africa rather than Europe.
Ukraine will bring the case against Poland and the EU to the World Trade Organization, if they fail to lift restrictions on its agricultural exports to the bloc this month, Taras Kachka, Ukraine’s deputy economy minister said at POLITICO.
Ukrainian railways have partially restricted cargo shipments to Ukraine’s major Danube River port Izmail, as has been the target of Russian drone attacks in recent weeks, the railways said on Monday.
Russian President Vladimir Putin expressed on Monday his country’s readiness to work with the State of Qatar and Turkey to transport grains to many African countries.
According to the Russian Grain Union, August 2023 Russian grain export reached a 7-year high of 7.7 mln tonnes, with Egypt as the largest importer of Russian wheat, and Algeria the second. The third place was taken by Turkey.
Domestic wheat prices for 4-grade, were on average at 13`500 RUR/t (141 USD/t).
South-East Asia
Malaysian palm oil prices ended lower, dragged down by weaker rival oils.
Indonesia has set its crude palm oil reference price for the Sept. 1-15 period.
ABARES September Crop Report pegged Australian wheat production at 25.4Mt, barley at 10.5Mt and canola at 5.2Mt. Its first 2023-24 sorghum production forecast is 1.5Mt.
ABARES said total Australian winter-crop production was expected to reach 45.2 million tonnes in 2023-24.



Energy markets
Oil prices edged higher, on expectations that OPEC+ would keep supplies tight and speculation that the U.S. Federal Reserve will cease its aggressive interest rate hike campaign.
This morning, oil prices were mixed as a private-sector survey showed that China’s services activity expanded at the slowest pace in eight months in August.
Ocean freight markets
The Baltic Exchange’s main sea freight index in London rose, snapping its three-session losing streak, supported by an uptick in capesize vessel rates.
Equity markets
Asian shares slid this morning, as weak service sector data rekindled worries over China’s sputtering economy, while the Reserve Bank of Australia kept interest rates unchanged, as expected, for a third month in a row.
Currency trading
The U.S dollar rose to 146.93 Japanese yen from 146.48 yen late Monday. The euro slipped to $1.0778 from $1.0796.

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

Author: Sandro F. Puglisi

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