Markets

Daily Market Wire 2 March 2022

Lachstock Consulting, March 2, 2022

Volatile markets continue to trade limits and again gap higher, led by crude oil and oilseeds.

  • Chicago wheat May contract up US50cents per bushel to 984c/bu;
  • Kansas wheat May contract up 50c/bu to 1003c/bu;
  • Minneapolis wheat May up 59.75c/bu to 1053.75c/bu;
  • MATIF wheat May contract up €24.75/t to €340.25/t;
  • Black Sea wheat March contract up $27.50/t to $360/t
  • Corn May contract up 35c/bu to 725.75c/bu;
  • Soybeans May contract up 53.25c/bu to 1690c/bu;
  • Soybean meal up 2pc;
  • Soybean oil up 5pc;
  • Winnipeg canola May 2022 contract up C$47.20/t to $1079.90/t;
  • MATIF rapeseed May 2022 contract up €70.25/t to €825.75/t;
  • ASX March 2022 wheat contract up A$1/t to $384/t;
  • ASX Jan 2023 wheat contract up $9/t to $399/t;
  • AUD dollar weaker at US$0.725;
  • Brent crude oil futures up 7pc;
  • Dow Jones Industrials Average down 2pc.

International

GASC reported that a loaded 60,000t vessel has left the Ukrainian port of Yuzhny, just east of Odessa, and is under way to Egypt. The oil tanker market is one of the most impacted as freight rates on the Russian crude shipping route soared nine-fold in three days. Pre-invasion, rates were pegged at US$17,000/day; now you would expect to pay $110,000/day on the TD6 Black Sea-to-Med route.

Cropping regions on the US Plains desperately need a drink, as does the north China Plains through to the Yangtze.

Australia

Local markets showed a little more strength yesterday. Wheat values in Victoria port zones and delivered homes were firmer $3-4/t, APW1 track values around $388-390/t. WA ASW1 FIS values now up around the $375/t.

Barley prompt delivery Geelong Melbourne region bids continued strong. Malting barley in Victoria was bid $5-6/t firmer.

Canola markets increased sharply, following the price drops which started the week.

Logistics arising from heavy rain in Queensland and northern NSW set the theme for trade this week.

Domestic end users are scrambling to get grain delivered into mills and feedlots as road access is cut off. It affects the timing of local price bids which are not being set until later in the day.

New crop pricing is hard to extract, despite the basis being very weak and the basis looking attractive. These factors make it a tough market to trade.

The weather will not let up. More rain fell in the past 24 hours. Most of Victoria received falls of 10mm or more, limiting bunker site access and rain delays to vessels loading.

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