Futures gains continued, posting 3pc rises on top of previous day strength.
- Chicago wheat March contract up US27.5cents per bushel to 796.5c/bu;
- Kansas wheat March contract up 27.25c/bu to 800c/bu;
- Minneapolis wheat March up 32.75c/bu to 939.75c/bu;
- MATIF wheat March contract up €7/t to €274.75/t;
- Corn March contract up 11c/bu to 610.5c/bu;
- Soybeans March contract up 30c/bu to 1391.25c/bu
- Winnipeg canola March 2022 contract up C$36.70/t to $1000.70/t;
- MATIF rapeseed February 2022 contract up €16/t to €753.25/t;
- ASX March 2022 wheat contract up A$9.50/t to $359.50/t.
- ASX Jan 2023 wheat contract up $3/t to $358/t.
- AUD dollar firmer at US$0.721
In other markets Black Sea wheat was quoted as US$5.50/t higher, soybean meal firmed 2pc, soybean oil firmed 3pc and the Dow Jones Industrial Average eased 1pc.
Geopolitical and inflation concerns have produced sharp gains in wheat within a two-day rally. Russia is looking for security guarantees on wheat, and has booked a meeting on Friday with US diplomats; this is now considered the last chance for a resolution.
Corn gained momentum as the market further digests concerns around Ukrainian corn exports, inflation, fertiliser costs and production in South America. We also cannot ignore the recent purchase of around 1.5 million tonnes of US corn by China as the Phase One trade deal expires.
More wheat tenders stepped back into the market, with Jordan and Iran both issuing new calls for milling wheat.
Local markets showed some life yesterday. Wheat was firmer by A$5/t, and barley also firmed in nearby slots by $5/t, while canola was again softer.
Rain through the Liverpool Plains in NSW and Queensland’s Downs is hindering the early part of the sorghum harvest.
Selling liquidity has remained thin as growers are still somewhat in holiday mode, and the trade is busy aligning the supply chain to execute existing sales before new business is done.
Source: Lachstock Consulting