Wheat prices eased mostly around 1pc overnight. Corn and canola gained.
- Chicago wheat December contract down US14.25 cents per bushel to 813.5c/bu;
- Kansas wheat December contract down 13.5c/bu to 856.75c/bu;
- Minneapolis wheat December contract down 5.25c/bu to 922c/bu;
- MATIF wheat December contract down €3.50/t to €330.75/t;
- Black Sea wheat December contract down $0.25/t to $352.75/t;
- Corn September contract up 5c/bu to 605c/bu;
- Soybeans November contract down 8.5c/bu to 1341c/bu;
- Winnipeg canola November 2022 contract up C$13.70/t to $843.60/t;
- MATIF rapeseed November 2022 contract up €1.25/t to €673.50/t;
- ASX July 2022 wheat contract up A$8.50/t to $416/t;
- ASX Jan 2023 wheat contract up $7/t to $427/t;
- AUD dollar weaker at US$0.675.
Hopes for clearance of an export corridor to ship Ukrainian grain continues to gain momentum. We suspect the market believes it will get this grain out of the Black Sea. This has weighed in on market sentiment especially for wheat. Russian farmers have harvested close to 20 million tonnes (Mt) of grain, according to its agriculture minister 15.5Mt of wheat and 3.5Mt barley and commenting that harvest pace and yields are higher than previous season on some crops.
South Korea and The Philippines stepped into the market to buy around 265-300,000t feed wheat. Jordan tendered for 120,000t barley and South Korea also is believed to have purchased 135,000t feed corn.
Corn was the only grain market showing signs of life, finishing the session higher. Weather became a focus, the western Corn Belt and Plains saw temperatures above average and precipitation below average. EU is also experiencing similar weather situation.
In Argentina the monthly report of the Rosario Board of Trade said wheat planting was lowered by 4.8pc amid drought conditions, which may cut production by 800,000t. Recent dryness would see the wheat planted area projection at 5.9million hectares, compared with 6.2m hectares projected in June.
The COVID-19 pandemic is “nowhere near over”, World Health Organisation (WHO) chief Tedros Adhanom Ghebreyesus said, citing new waves around the world and voicing concern the virus is “running freely”. He was worried case numbers were continuing to rise and “putting further pressure on stretched health systems and health workers”.
The threat of Foot and Mouth Disease (FMD) arriving in Australia continues to generate plenty of conversation and concern for agriculture. It has domestic consumers on high alert and how that looks for the grain market on domestic feed grains.
The June unemployment rate was 3.5pc. Experts report this would all but guarantee the RBA lifting the official interest rate 0.5pc for a third straight month.
Showers of rain continue to push through Western Australia growing regions, whilst parts of South Australia and Victoria are set to receive showers over the weekend.