Upward market action continued in wheat, which gained almost 3pc. Corn eased fractionally and the soy complex gave back most of the previous day gains.

• Chicago wheat May contract up US29.75cents per bushel to 1081.25c/bu;
• Kansas wheat May contract up 34.75c/bu to 1141.5c/bu;
• Minneapolis wheat May up 14.75c/bu to 1142c/bu;
• MATIF wheat May contract up €6.75/t to €379.50/t;
• Black Sea wheat July contract up $4/t to $356.75/t;
• Corn May contract down 4.25c/bu to 764.5c/bu;
• Soybeans May contract down 33.75c/bu to 1655.25c/bu;
• Winnipeg canola November 2022 contract up C$1.40 /t to $1012.50/t;
• MATIF rapeseed November 2022 contract up €0.50/t to €797.75/t;
• ASX July 2022 wheat contract down A$2.50/t to A$398.50/t;
• ASX Jan 2023 wheat contract up $3.50/t to $410/t;
• AUD dollar weaker at US$0.742.

International

It was an interesting trading day from start to finish because, going by the market reaction, Friday’s USDA reports provided little other than a platform for more tightening. The anticipation of a renewed push by Russian in Ukraine was the driver however the conjecture around spring planting in Ukraine continues to drive balance sheets. Price is seemingly not rationing demand and the usual suspects are hunting for more grain. Egypt’s GASC raised a tender for wheat and USDA flashed a corn sale of 1.02Mt to China. This adds more importance to the US balance sheet performing, so market conditions during corn planting will be volatile to say the least.

The UN index of food prices, already at a record high, rose by 12.5pc in reaction to Russia’s invasion of Ukraine. The Food and Agriculture Organization said world wheat prices soared nearly 20pc.

The Baltic Exchange dry bulk sea freight index fell for the 12th straight session on Friday, weakness in the supramax and panamax segments outweighing gains in the capesize segment. The European Commission on Tuesday proposed new sanctions against Moscow over the invasion of Ukraine. It banned buying Russian coal and banned Russian ships entering EU ports.

The Philippines purchased 55,000t Indian feed wheat at US$365-370/t C&F. The Australian offers were priced around $400/t.

Ukrainian spring barley planting is underway and is proceeding ahead of last year’s pace. Last year’s wetness made for a late sowing campaign. Progress increased 8pc for the week, to 659,000ha. The Ukraine government updated its expectations for spring planting, estimating  plantings at 13.4mha, down 3.5mha from 2021, but well up on the 7mha total prediction last month from then Agriculture Minister, Roman Leshchenko.

Australia

Local markets began the week with some welcome activity. Eastern Australian wheat and barley trade volume increased on Monday.

New crop canola markets continued to surge, putting on another $5-10/t yesterday. New season Kwinana FIS canola was bid $1110/t.

Despite international bulk freight indices weakening, traders locally are still finding it a challenge to secure containers for export business. Local road freight rates also continue to firm with rates of 18-20cents per tonne kilometre being quoted.