The US winter wheats rallied 3pc on Friday. Brent crude gains 2pc.
- Chicago wheat May 2023 contract up US27.75 cents per bushel to 795.75c/bu;
- Kansas wheat May 2023 contract up 28.75c/bu at 896.75c/bu;
- Minneapolis wheat May 2023 contract up 13c/bu to 923c/bu;
- MATIF wheat May 2023 contract up €4.75/t to €294.25/t;
- Black Sea wheat March 2023 contract down US$0.50 to $304.25/t;
- Corn May 2023 contract up 9.25c/bu to 678.25c/bu;
- Soybeans May 2023 contract down 21.75c/bu to 1533.5c/bu;
- Winnipeg canola May 2023 contract up C$1.40/t to $824.60/t;
- MATIF rapeseed May 2023 contract up €2.75/t to €550.50/t;
- ASX Mar 2023 wheat contract up A$1/t to $391/t;
- ASX Mar 2023 barley contract unchanged at A$331.50/t;
- AUD dollar eased twenty points to US$0.692.
Russia’s ambassador to the UN said on Friday that they had not been able to export any grain as part of the Black Sea corridor. Russia has maintained its disapproval of how the deal is structured, while Ukraine’s Ag Ministry has proposed increasing the minimum tonnage of ships approved to use the corridor, aiming to boost exports despite opposition from Russia.
Russia plans to cut its oil output by 500,000 barrels a day next month, following through on a threat to retaliate against western energy sanctions. Deputy Prime Minister Alexander Novak said in a statement on Friday “Russia believes that the mechanism of price caps on Russian oil and petroleum products is an intervention in market relations and an extension of destructive energy policies of the collective West.” The announcement resulted in oil prices surging. The move would further tighten supply after OPEC+ had already agreed to a 2 million barrel-a-day production cut last year in an effort to support prices. Although unusual for Russia to move outside of OPEC+, delegates from the group signalled they won’t take any action to fill the supply shortfall.
Buenos Aires Grain Exchange reports that for the week ending 8 Feb, corn crop ratings edged lower to 66pc fair/excellent (68pc previous week, 75pc previous year), with more moisture needed to aid crop development. Total production outlook maintained at 44.5Mt. Soybean production outlook cut by 3Mt, to 38Mt reflecting the impact of generally suboptimal conditions, which have led to anticipated yield losses despite recent rains.
New chief ag trade negotiator for the US Trade Representative, Doug McKalip, told Reuters he has given Mexico until 14 Feb to respond to a US request to explain the science behind its planned bans on GMO corn and glyphosate herbicide. He noted Mexico’s response will help the trade agency decide next steps in its quest to resolve a long running dispute over Mexico’s biotechnology policies.
By the close on Friday we had seen the market firmer for the week. The trade is still noting poor grower selling liquidity but just enough keep the shorts happy. Friday night’s offshore rally will be positive today.
A dry weekend has helped sorghum harvest gain momentum in southern Queensland. Truckloads from western regions reportedly are delivering to container packers and bulk sites, with good yields and mostly good quality. The 8-day forecast is also looking relatively dry with less than 5mm on the cards for most sorghum growing region.