Daily Market Wire 16 March 2023

Lachstock Consulting, March 16, 2023

Wheat, coarse grains prices gained, canola rapeseed eased further. Crude oil slumped another 4pc.

  • Chicago wheat May 2023 contract up US6.5 cents per bushel to 702.75c/bu;
  • Kansas wheat May 2023 contract up 2c/bu at 819.75c/bu;
  • Minneapolis wheat May 2023  up 2.5c/bu to 852.5c/bu;
  • MATIF wheat May 2023 up €2.75/t to €272/t;
  • Black Sea wheat May 2023 up US$0.25/t to $290.50/t;
  • Corn May 2023 contract up 5.75c/bu to 626.5c/bu;
  • Soybeans May 2023 contract down 4.5c/bu to 1489.25c/bu;
  • Winnipeg canola May 2023 contract down C$6.60/t to $751/t;
  • MATIF rapeseed May 2023 contract down €1.25/t to €481.50/t;
  • ASX May 2023 wheat contract unchanged at A$401.50/t;
  • ASX January 2024 wheat contract unchanged at A$408/t;
  • ASX January 2024 barley contract up A$5.20/t to 332/t;
  • AUD dollar eased 63 points to US$0.6619


Export corridor, Black Sea Grain Initiative, negotiations are ongoing with Turkey’s Defence Minister saying on Wednesday that the country favours a 120-day extension of the deal. Russia has offered to extend the initiative for 60 days but is yet to receive official reactions from all parties, according to a Tass report. Ukraine has pushed back on Moscow’s proposal, saying that it contradicted the terms of the original agreement.

USDA reported private exporter sales of another 667,000t corn for delivery to China during the 2022-23 marketing taking the total for the week to 1.279 million tonnes (Mt). 

Ukrainian winter grain crops have resumed growth is some regions and most are in good or excellent condition, state weather forecasters said on Wednesday. 

According to Refinitiv Commodities Research, EU 2023-24 common wheat production forecast maintained at 133.9Mt (126Mt previous year) following recent beneficial rainfall and forecasts for upcoming warm weather, albeit with some downside risks from dryness. The weather over the past two weeks was cooler than average in most of Europe, including sub-zero temperatures in the Baltic and Scandinavia, although not attaining crop-threatening levels. Beneficial rains were seen in south-eastern Europe, Germany and France, although more precipitation is necessary to increase soil moisture levels to the long-term average.

European Commission data show that for the week ending 12 Mar, from 1 July 2022 cumulative marketing year all wheat exports were 22.6Mt (+7pc on previous year). Maize exports were 1.5Mt (-68pc), imports were 18.7Mt (+60pc). Barley exports were 6.5Mt (-21pc). Canola imports were 5.8Mt (+57pc) and sunflowerseed import, at 1.9Mt, was around 5 times more than the volume imported last year. 

FranceAgriMer has kept its monthly forecast of French soft wheat exports outside the EU unchanged at 10.45Mt for the 2022-23 season. 

Reuters reported a surge in African swine fever (ASF) infections in China was set to reduce hog output later this year. Infections reportedly began to surge around the Lunar New Year holiday.

Japan’s MAFF seeks 73,518t milling wheat from the US, Canada and Australia in its regular tender.

Jordan’s state grains buyer reportedly purchased around 60,000t milling wheat from optional origins at an estimated US$309.75/t c&f, for Aug shipment, and 50,000t barley at $275.50/t c&f for Sept shipment. 


Local markets values firmed over the course of the day yesterday along the east coast while SA and WA prices remained relatively unchanged. Liquidity continues to be a slow burn. Sorghum values in the north continue to be well bid and the northern feed grains market holds steady for now. 

According to ABS data, Australia exported 417,215t feed barley, 55,720t malting barley and 50,115t sorghum in January. Saudi Arabia was the biggest feed barley destination, taking 115,219t, Jordan took 91,280t and The Philippines took 56,332t. Japan was the biggest sorghum buyer with 31,564t followed by China which took 17,223t.



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