International

In Canada, we are seeing reports that crop conditions are continuing to deteriorate in the western area due to extended heat and its resultant dryness. Yield expectations on some cereals are continuing to decline as a result. 

The EU soft wheat production numbers have been dropping as harvest progresses. Stratégie Grain reduced its wheat estimates to 117.5 million tonnes (Mt) from 121.7Mt (and 127.2Mt last year). 

We have seen Black Sea and EU wheat values stabilise versus the lower grind North America is currently experiencing. 

The Bank of England made a cut on its policy rate of 25bp. It noted it will move cautiously in the loosening of its policies until it is more certain that inflation will remain lowered.
Mounting tensions in the Middle East along with the expected strong summer demand of European gas is leading to an expected near-term tightening of the market. 

An estimated 105,650t of milling wheat was purchased by Taiwan Flour Millers Assn from the US in a tender on Thursday. 

The planned US$8.2 billion buyout proposal from Bunge Global for Viterra received EU approval after concessions were offered to sooth competitor concerns. Bunge would become, by revenue, the second biggest agricultural company in the world.

Australia

With the AGIC conference being underway in Melbourne, a lot of traders will be off the tools today and minimal movement is expected in the markets. 

In the west, new crop canola saw a firming of $5-10/t, depending on port. Cereals remained largely unchanged over the day’s trade, with a slight dip lower for some specific traders. 

Results in the eastern states were similar, with canola shifting up $5-10/t on both old and new crop and minimal movement on cereals.
Much needed falls of rain over the past week have managed to top up cropping areas in most regions, with most cropping areas seeing 15-50mm over the past week.
A high frost event last night occurred across eastern Vic and SNSW, with parts of NNSW and Qld also seeing temperatures as low as 1°C.