US wheat markets shed 5pc overnight.

• Chicago wheat December contract down US37.25 cents per bushel to 794.25c/bu;
• Kansas wheat December contract down 44.5c/bu to 868c/bu;
• Minneapolis wheat December contract down 43c/bu to 886.5c/bu;
• MATIF wheat December contract down €3/t to €321.50/t;
• Black Sea wheat December contract down $2.25/t to $315.25/t;
• Corn December contract down 12.5c/bu to 658c/bu;
• Soybeans November contract down 27.75c/bu to 1394.75c/bu;
• Winnipeg canola November 2022 contract was down C$23.40/t to $812/t;
• MATIF rapeseed November 2022 contract down €11.50/t to €605/t;
• ASX Jan 2023 wheat contract down A$4/t to $403/t;
• ASX Jan 2023 barley contract unchanged at A$315/t;
• AUD dollar weaker at US$0.679.

International

A ship carrying Ukrainian grain has run aground in the Bosphorus Strait, effectively blocking access to the Black Sea. The Istanbul governor’s office confirmed the 173-metre vessel was safely grounded and anchored after a rudder failure.

Ukraine’s 2023 wheat sowing area may fall by 30-40pc due to lack of funds, and the harvest is unlikely to exceed 15 million tons, a deputy chair of the Ukrainian Agrarian Council said on Thursday, adding that wheat yields in 2023 could stay at a relatively low level of 4t/ha due to a possible decrease in fertiliser use.

Canada and China agreed to suspend proceedings against Chinese measures affecting import of Canadian canola seed, according to a World Trade Organisation complaint on Thursday.

Egypt’s GASC bought 120,000t Russian wheat via direct talks. The cargoes are believed to have been sold by trading company Solaris at a price of $340/t c&f.

Jordan reportedly purchased 60,000t barley at $323.50/t c&f, for Feb shipment via international tender and separately, also seeks 120,000t barley for Feb/Mar shipment.

Russia’s SovEcon forecasts September wheat exports at 4.0-4.5Mt (3.5m previous month, 4.7m same month previous year). Local traders and analysts suggested exports will increase as new crop supplies reach the market, albeit as competition from the EU and Ukraine, a strong local currency and logistical and payment difficulties continue to hamper shipments.

Refinitiv Commodities Research report that lingering dryness in Argentina has led it to cut 2022/23 wheat production forecast by 1pc from previous estimate, to 18.0Mt (22.1Mt previous year). Weather outlooks point to dry conditions over the coming week, which may further hurt yield potential.

Following unanticipated difficulties with the launch of the new US Export Sales and Reporting Maintenance System, USDA is to temporarily revert to the legacy system, with no weekly export sales data to be published until 15 Sep.

Australia