Daily Market Wire 2 November 2022

Lachstock Consulting, November 2, 2022

Markets continued firmer by about 1pc.

  • Chicago wheat December contract up US20.25 cents per bushel to 902.5c/bu;
  • Kansas wheat December contract up 11.25c/bu at 990c/bu;
  • Minneapolis wheat December contract up 8.5c/bu to 989.75c/bu;
  • MATIF wheat December contract up €5.50/t to €357.75/t;
  • Black Sea wheat December contract down US$0.25/t to $324.50/t;
  • Corn December contract up 6.25c/bu to 697.75c/bu;
  • Soybeans March 2023 contract up 26.75c/bu to 1454.25c/bu;
  • Winnipeg canola March 2023 contract was up C$1.50/t to $886.10/t;
  • MATIF rapeseed February 2023 contract up €6/t to  €671/t;
  • ASX Jan 2023 wheat contract  unchanged at A$503/t ;
  • ASX Jan 2023 barley contract unchanged A$350/t;
  • AUD dollar weaker at US$0.639.


The United Nations UN stopped grain ships moving through Ukraine’s crop-export corridor on Wednesday, after Russia warned that ships weren’t safe using the route. Grain vessels continued to leave Ukraine on Monday and Tuesday, even after Moscow withdrew its support for the deal. But the UN said Tuesday those movements were “temporary and extraordinary”. 

The UN will issue another update on the status for the corridor on Wednesday, a spokesperson for the secretary-general said. The agency is “exerting all efforts” to resume full participation in the grain deal, the statement said. 

The Turkish Defence Minister emphasised the importance of the continuation of the grain corridor saying Turkey will continue to do its part for peace and humanitarian aid.

Russian President Putin said on Monday “We are not saying that we are ceasing our participation in this operation. No, we are saying that we are suspending it,” he told a televised news conference. “Ukraine must guarantee that there will be no threats to civilian vessels or to Russian supply vessels,” he said, noting under the terms of the deal, Russia is responsible for ensuring security. 

Ship insurer Ascot paused offering insurance cover for new shipments which plan on using the Black Sea grains corridor until there is more clarity on the impact of Russia’s decision to suspend its participation.
The Trading Corporation of Pakistan (TCP) and the Ministry of Finance’s Economic Coordination Committee (ECC) have purchased 685 000t wheat with the price paid said to be around $372/t CIFFO for November-December shipment dates. 

An Iraq tender for a nominal 50,000t wheat for which the lowest offer received reportedly was from the EU (Romania) at $459/t C&FFO. 

USDA’s initial winter wheat crop rating report came in at just 28pc good/excellent, down from 45pc last year and well below the 5-year average of 50pc . It was the worst rating for this time of year since ratings began in 1987. Although the correlation between now and final yield is very low it does show how bad conditions are in the US and it will take a significant turnaround for things to improve.


Local markets slowed up yesterday with the Melbourne Cup public holiday in Vic, and the market lacked bids over the day. Liquidity on new crop along the east coast remains slow while in WA it continues to trickle out as harvest ramps up.
Growers delivered 2470 tonnes to Viterra sites last week, most in the Western region of SA comprising more deliveries of barley, field peas and lentils as well as the first loads of canola for the season. Unfortunately, there were some massive rainfall totals received over the last couple of days and although it looks like we are in for a brief reprieve, there is more on the forecast. 

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