Offshore markets overnight tended lower.
- Chicago wheat December contract up US1.25 cents per bushel to 861c/bu;
- Kansas wheat December contract down 0.25c/bu at 952c/bu;
- Minneapolis wheat December contract up 1c/bu to 955.25c/bu;
- MATIF wheat December contract down €4.50/t to €346.25/t;
- Black Sea wheat December contract down $1.50/t to $330.50/t;
- Corn December contract down 6.25c/bu to 683.25c/bu;
- Soybeans November contract up 1.5c/bu to 1385.25c/bu;
- Winnipeg canola Nov 2022 contract was down C$6.80 to $855.50/t;
- MATIF rapeseed November 2022 contract down €13/t to €620.75/t;
- ASX Jan 2023 wheat contract up A$8/t to $491/t ;
- ASX Jan 2023 barley contract up A$3/t to $333/t;
- AUD dollar firmer at US$0.629.
International
Russia has reportedly told the UN that an extension of the Black Sea grain deal was dependent on Russia being able to boost its own agricultural and fertiliser exports. At a meeting in Moscow yesterday, Russia’s deputy defence minister Alexander Fomin told UN Under-Secretary-General Martin Griffiths that extending the deal, “directly depends on ensuring full implementation of all previously reached agreements.”
Russia attacked Ukraine’s capital yesterday with Iranian-made drones, continuing its campaign of strikes against Ukrainian energy infrastructure and civilian targets
In his nearly two-hour address at the Communist Party congress on Sunday, Xi Jinping defended his hard-line reign and presented himself as the leader who saved the nation from the pandemic and who can guide the country through danger and uncertainty. His defence of the controversial zero covid policy is an indication that they will not be moving away from it soon.
Ongoing drought is impacting planting of the 23/24 US winter wheat crop, particularly in major producing states Kansas and Oklahoma.
South Korea’s Major Feedmill Group (MFG) have reportedly purchased about 65,000t feed wheat from Australia at $354.49 c&f for Feb/Mar shipment
Philippines purchased 165,000 t feed wheat from Australia at $345.00 c&f for Jan/Mar shipment.
Australia
Markets are few and far between now through new crop and even on old cop delivered. Logistics issues in eastern Australia are a nightmare and will remain to be for the next week or even 2 if it continues to rain. Old crop site liquidity remains active on Clear Grain Exchange. ASX Jan 23 East Coast remains wide bid offer spreads.
Rabobank has released its latest winter crop forecast with wheat production to come in at 35.5mmt (down 2pc on last year). Barley production is expected to reach a record 14.8mmt (up 7pc on last year) and canola is forecast to reach a record 7.2mmt (7pc increase on last year). The report notes that WA and SA are set to break production records and VIC was set for a record year until last week’s rain event. With NSW hardest hit by excess rain throughout the season, the state’s grain and oilseed production is expected to come in 28pc below last year, at 13.6Mt.
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