Most markets turned firmer, but Winnipeg canola and the Australian wheat and barley futures eased more than 1pc, barley March contract settled 3pc lower.
- Chicago wheat March 2023 contract up US9 cents per bushel to 740/bu;
- Kansas wheat March 2023 contract up 10.5c/bu at 822.25c/bu;
- Minneapolis wheat March 2023 contract up 4.75c/bu to 899.25c/bu;
- MATIF wheat March 2023 contract up €2.50/t to €293/t;
- Black Sea wheat March 2023 contract up US0.50/t to $307.75/t;
- Corn March 2023 contract up 1c/bu to 656c/bu;
- Soybeans March 2023 contract up 8c/bu to 1493c/bu;
- Winnipeg canola March 2023 contract was down C$9.80/t to $831.80/t;
- MATIF rapeseed February 2023 contract up €3.25/t to €564.25/t;
- ASX Jan 2023 wheat contract settlement down A$2/t to $376/t;
- ASX Mar 2023 wheat contract settlement down A$3.80/t to $375/t;
- ASX Jan 2023 barley contract down A$5.50/t to $329/t;
- ASX Mar 2023 barley contract down $10/t to $320/t;
- AUD dollar firmed to US$0.691.
All eyes will be on the USDA reports to be released today. The USDA will issue a Crop Production report, a World Agricultural Supply and Demand Estimates (WASDE) report, a Grain Stocks report for December 1 and its annual report of Winter Wheat Seedings. It is expected that the USDA will lower its estimates for 2022-23 Argentinian maize, soybean and wheat production and increase Russian and potentially Australian wheat production. Polls suggest that traders are expecting US wheat, maize and soybean ending stocks to be revised higher based on lacklustre US exports and US winter wheat plantings are expected to increase to a seven-year high. Any surprises that come out of these reports are likely to result in price moves depending on the sentiment of the revisions.
China’s Commerce Ministry said on Wednesday it will continue to impose anti-dumping and anti-subsidy tariffs on distillers dried grains (DDGS) imported from the US for another five years. The move was not a surprise and continued tariffs are not expected to have a significant impact on US exporters as they have found other markets such as South Korea and Mexico since China first imposed the tariffs in 2016.
European Commission data shows that for the week ending 8 January all wheat exports at 17.7Mt are up 5pc on previous year, Barley exports at 4.5Mt are down 30pc and maize imports at 14.9Mt are up 91pc.
South Korean importers have issued a tender for 50,000t US milling wheat, for March-April shipment. The Major Feedmills Group (MFG) reportedly purchased up to 65,000t feed wheat from either the US or Australia without issuing a tender, at $346/t C&F for May-June shipment.
Egypt’s GASC has purchased 120,000t Russian wheat at $337/t C&F for Feb shipment. The purchase is provisional, awaiting approval by the World Bank which is providing the funding.
Local markets backed off across the cash boards yesterday, with wheat bids off around $5/t, however, there still was solid interest for feed wheat in the Geelong zone as the front-end export program is still heavy weighted with feed wheat cargoes.
Harvest from Southern NSW into Vic and around to WA continues to grind away as we approach the middle of January. It’s been a slow crawl to the finish line for most, but some later regions still have work in front of them over the next couple of weeks.
Another dry weekend is on the cards, but widespread showers are expected to build again next week with southeast NSW and eastern Vic looking to get the higher totals of between 5-25mm.