Daily Market Wire 2 February 2023

Lachstock Consulting, February 2, 2023

Soybeans eased 1pc.  The US dollar index eased and the Australian dollar gained about 1pc. Brent crude fell 3pc.

  • Chicago wheat July 2023 contract up US1.75 cents per bushel to 773c/bu;
  • Kansas wheat July 2023 contract up 4.5c/bu at 868c/bu;
  • Minneapolis wheat May 2023 contract up 3.75c/bu to 919.25c/bu;
  • MATIF wheat May 2023 contract down €2/t to €282.50/t;
  • Black Sea wheat March 2023 contract down US$0.25/t to $304.75/t;
  • Corn May 2023 contract down 1.25c/bu to 679.5c/bu;
  • Soybeans May 2023 contract down 13.75c/bu to 1516.5c/bu;
  • Winnipeg canola March 2023 contract down C$4.10/t to $827.10/t;
  • MATIF rapeseed May 2023 contract down €4/t to €541/t;
  • ASX Mar 2023 wheat contract up A$2/t to $375.50/t;
  • ASX Mar 2023 barley contract up A$5/t to $315/t;
  • AUD dollar gained 1pc to US$0.713.


USDA Foreign Agricultural Service post in Buenos Aires revised down its 2022-23 soybean production estimate to 36Mt, 9.5Mt below the official USDA estimate, citing dry weather and high temperatures in the last months of 2022. The first-crop soybeans were particularly affected. Recent rains would buy time for second crop soybeans, but better-than-average weather through February would be needed for a substantial recovery, it said in a report.

Egypt intends to expand purchases of wheat from Russia, according to the Egyptian Foreign Ministry. It is developing mechanisms to enable trade in local currencies, including roubles.

Hungary, Poland, Czech Republic, Slovakia, Romania and Bulgaria have made a joint request to the EU Agriculture and Fisheries Council for immediate measures to help mitigate the impact of elevated grains and oilseeds imports from Ukraine, stating that the surge in imports has reduced demand for local grain resulting in lower prices. Potential aid could include developing logistics to quickly transport the grain beyond Ukraine’s immediate neighbours, as well as providing support to affected farmers.

Jordan’s state grains buyer purchased 60,000t milling wheat from optional origins, likely from Romania at an estimated US$336.50/t c&f for June shipment.

Algeria’s state grains agency reportedly purchased, for Feb-Mar shipment, around 300,000t durum wheat at an estimated cost-and-freight price of US$448-450/t for consignments in Panamax vessels and $458-459/t for shipments in Handysize vessels, expected to be sourced primarily from Canada.

South Korea’s Nonghyup Feed Inc reportedly purchased around 65,000t feed wheat from Australia, at an estimated $340/t c&f.


Local markets tracked sideways again over the course of the day, trade wheat and barley bid offer spreads were left wide. Canola values were a couple of bucks firmer. ASW1 wheat volume in WA continued to trade on the exchange platforms online. A firmer AUD this morning may see local cash bids slightly softer. 

Agriculture Minister Murray Watt welcomed a meeting scheduled between Trade Minister Don Farrell and his Chinese counterpart Wang Wentao to be held next week. The first such meeting in three years, Mr Watt said though plenty of rumours were flying, really nothing was confirmed about changes applying to agricultural products.

The Bureau of Meteorology Climate Driver Update reported La Niña conditions continue in the tropical Pacific. While Pacific Ocean temperatures have warmed in recent weeks, atmospheric indicators have yet to respond. The Bureau’s ENSO Outlook continued at La Niña. All of the seven international climate models surveyed by the Bureau anticipate central Pacific sea-surface temperatures will be ENSO-neutral during February. ENSO events typically peak in late summer and decay during the autumn; current outlooks indicate this La Niña may decay slightly earlier than usual.


Grain Central: Get our free news straight to your inbox – Click here


Your email address will not be published. Required fields are marked *

Your comment will not appear until it has been moderated.
Contributions that contravene our Comments Policy will not be published.


Get Grain Central's news headlines emailed to you -