Wheat futures offshore mostly strengthened. Soybeans closed 2pc lower, as did ASX east wheat.
- Chicago wheat March contract up US3.5 cents per bushel to 788.75c/bu;
- Kansas wheat March contract up 7c/bu to 812.5c/bu;
- Minneapolis wheat March down 3.5c/bu to 1018.25c/bu;
- MATIF wheat March contract up €2.75/t to €286.25;
- Black Sea wheat added $2.50/t.
- Corn March contract down 5c/bu to 585c/bu;
- Soybeans January contract down 23.75c/bu to 1244c/bu
- Winnipeg canola January 2022 contract up C$4.20/t to $1009.80/t;
- MATIF rapeseed February 2022 contract down €5.50/t to €712.75/t;
- ASX wheat January 2022 down A$6/t to $392/t;
- ASX wheat January 2023 down $6.50/t to $371/t.
Lower prices are doing what they are designed to do, find demand. A bunch of countries, mainly North Africa and the Middle East, put their hands up looking for wheat. Black Sea wheat futures went home at $340 last night having traded to US$377 toward the end of November. Countries such as Egypt have been dragging their feet vs normal pace so it makes sense that they will be sniffing around as well as others. A flood of inquiry from our international friends asking the question, “whats the quality like down there?” Global sensitivity to protein spreads is definitely evident.
Better than expected rains in northern Argentina punished soybeans and added some weight to the corn market. China is buying feed grain, mainly Aussie feed wheat. The corn balance sheet has been helped by the ethanol crowd but the longs need China to get a rattle on.
China is taking steps to control the apparent economic slowdown, with cash, and trimming some of the more restrictive directives such as energy consumption restrictions to encourage more growth along with focusing on a lower Yuan.
Cash boards took a beating yesterday to kick off the week with wheat values off $10-14/t on all grades through Brisbane and NSW port zones. Victoria port zones were softer also by $5-8/t and South Australian premiums have now come off with APW1 bid $400/t Port Adelaide on the cash boards vs Port Kembla bid $416/t.
Barley cash bids were also off $5-8/t, while trade track markets closed in on the bid and offer side putting east coast and South Australia fair values to start the week down by $5-6/t.
Scattered showers pushed through parts of South Australia yesterday causing some more harvest delays grower will get back on today with temps rising into the high 20s. The rest of the country continues to crawl through this big Aussie harvest.
Source: Lachstock Consulting
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