Corn rallied 5 percent. Wheat and oilseeds gained.
- Chicago wheat December up US16.75 cents per bushel to 690.5c/bu;
- Kansas wheat December up 12.25c/bu to 832.25c/bu;
- Minneapolis wheat December up 0.75c/bu to 886.5c/bu;
- MATIF wheat December up €2.50/t to €240.75/t;
- Black Sea wheat December up US$0.50/t to $242.75/t;
- Corn September up 29.5c/bu to 528.75c/bu;
- Soybeans November up 17.25c/bu to 1395.25c/bu;
- Winnipeg November canola contract was up C$3.60/t to$833.40/t;
- MATIF rapeseed November 2023 up €6.25/t to €482/t;
- ASX January 2024 wheat down A$2/t to $390/t;
- ASX January 2024 barley unchanged at A$303.30/t;
- AUD dollar eased 5 points to US$0.6812.
The Black Sea deal remains off, but the market rebounded. Russia overnight carried out airstrikes on Ukraine’s Odesa port for the second night in a row. The market is starting to digest what life without the corridor might look like, bearing in mind that close to 9 million tonnes (Mt) wheat and 17Mt corn has been shipped via the corridor.
According to insurance broker Marsh, the facility to provide insurance cover for the grain and food cargoes traveling through Ukraine’s grain corridors was suspended following Russia opting out of the grain-export deal on Monday. This was a marine and war facility providing much needed cover for cargoes being shipped from Ukraine’s 3 main Black Sea ports, a deal previously put together by the UN and Turkey.
Russia launched missiles and drone strikes on southern and eastern Ukraine that caused damage to infrastructure in the Black Sea port of Odessa. It was reported that the attacks failed to disrupt the operation of the Odesa port, however damage to a nearby fuel storage and a plant making seaborne drones was reported.
The US corn market shrugged off the previous days 2pc improvement in crop ratings to 57 percent good-to-excellent, and switched to the weather forecast which is showing a return to more hot/dry weather for the remainder of July following the cool and wet first half July.
Japan is seeking 106,366t milling wheat in its weekly tender, and it is reported that Iran is tendering for up to 180,000t corn sourced from origins including Brazil, Europe or the Black Sea.
Canola markets remained strong on the back of the offshore markets. WA markets increased to $795/t for new crop yesterday, the higher bid prompting an increase in farmer selling. Wheat and barley bids remained relatively unchanged.
ASX Jan wheat futures settled slightly down at $290/t (-$2/t).
The 8-day forecast is still calling for a relatively dry week. most cropping areas in the east are calling for less than 10mm with slightly higher falls expected in Victoria’s Western Districts and the South East of South Australia. Similar falls are expected for most of WA with higher falls on the cards for southwestern WA and the Great Southern with falls of up to 50mm expected.