Wheat and corn markets fell in overnight trading.

• Chicago wheat March contract down US19.5cents per bushel to 779.75c/bu;
• Kansas wheat March contract down 22.5c/bu to 806c/bu;
• Minneapolis wheat March down 13c/bu to 953c/bu;
• MATIF wheat March contract down €7.25/t to €266.75/t;
• Black Sea wheat March contract down $4.75/t to $313.75/t
• Corn March contract down 17.75c/bu to 638c/bu;
• Soybeans March contract down 18.75c/bu to 1551.25c/bu;
• Soybean meal down 2pc.
• Winnipeg canola May 2022 contract down C$4.10/t to $990.60/t;
• MATIF rapeseed May 2022 contract up €2.75/t to €688.25/t;
• ASX March 2022 wheat contract A$3/t weaker at $363/t;
• ASX Jan 2023 wheat contract $6.50/t weaker at $366.50/t;
• AUD dollar firmer at US$0.715.

International

The market reacted to news that the Russians would be pulling back from the Russian-Ukraine border. Now we get some clarity on how much of today’s price is Russian risk premium.

According to some models, rain prospects are building in South America, and many are reviewing the lower end of estimates which may be a little too aggressive in light of better conditions in parts of Brazil.

The dry freight market had a bullish run last week, seeing rates of the bigger size vessels gaining nearly 40pc in a hectic week. Panamaxes were back in the game with fresh coal and grain demand, leading support to Supramaxes.  Furthermore, dry bulk commodity prices carried on their sell-off, and the bunker market’s volatility persisted due to political tensions, all likely to increase volatility in freight rates.

Australia

Local markets took a breather yesterday. Wheat values were A$1/t stronger. Liquidity was on the quiet side and we saw much the same through barley. Canola values were off $5-$10/t along the east coast.

The sorghum market is holding, despite the large harvest and selling activity remaining fluid across the board. There is still a big focus on getting trucks and storage while export margins remain very attractive.