Market moves overnight were very small compared with several days’ moves last week. Chicago Soft Red Winter wheat gained barely one percent returning from Monday’s public holiday. Australia’s new crop barley futures gained 2pc and the Australian dollar eased 1pc.
- Chicago wheat December up US8.5 cents per bushel to 724.25c/bu;
- Kansas wheat December down 2.75c/bu to 834.25c/bu;
- Minneapolis wheat December down 4.25c/bu to 856c/bu;
- MATIF wheat December 2023 down €1.75/t to €246.25/t;
- Black Sea wheat December down US$1.50/t to $248.50/t;
- Corn September 2023 down 1c/bu to 593c/bu;
- Soybeans November 2023 up 0.5c/bu to 1342.75c/bu;
- Winnipeg November canola contract down C$4/t to $714.80/t;
- MATIF rapeseed November 2023 down €1.75/t to €473/t;
- ASX January 2024 wheat up A$1/t to $397.90/t;
- ASX January 2024 barley up $7.50/t to $327.50/t;
- AUD dollar eased 67 points, one percent, to US$0.6784
The UN Secretary General said he was disappointed in the slowing pace of ship inspections under the Black Sea Grain Initiative and the exclusion of the port of Pivdennyi. In a statement the Secretary-General’s office reported he had called on the parties to accelerate operations and urged them to do their utmost to ensure the continuation of the agreement he described as vital. The agreement is up for renewal on 17 July. The statement said 1.3 million tonnes (Mt) of foodstuffs were shipped via the corridor in May versus a peak of 4.2Mt shipped in October.
Persistent rain in southern regions of Russia could result in lower quality wheat in the new season, according to the director of the Moscow-based agricultural consultancy IKAR.
Due to persistently dry US weather and forecasts for ongoing drought in the Corn Belt, crop consultant Michael Cordonnier cut his US corn yield by 1 bu/ac to 177 bu/ac. He now projects the corn crop at 14.77 billion bushels (USDA 15.27 billion bu). Dr Cordonnier trimmed his soybean yield by 0.5 bu/ac to 51 bu/ac, lowering his production forecast to 4.44 billion bushels (USDA 4.51 billion bu).
Recent rains in Brazil will help later-developing safrinha corn. As a result, Dr Cordonnier raised his Brazilian corn crop estimate by 1Mt to 130Mt. He cut his Argentine soybean crop estimate a further 1Mt to 21Mt, noting double-crop soybean yields were especially disappointing.
According to Maxar Technologies – weather desk, rain this week should notably improve soil moisture for crops in dry areas of northern Europe, including France, Germany and Poland.
Algeria ended up buying around 630,000t milling wheat largely expected to be sourced from Russia. It bought around 300,000t at about US$261.50/t c&f. Traders also reported other purchases at higher prices in a range up to $264.50/t.
Local markets picked up again slightly yesterday, with current crop feed barley in WA firmer by a few bucks, current crop wheat also found a bid, while current crop canola markets continued to trade and firm across the country.
Moisture continues to build into the forecast this week with northern NSW picking up a little more on the forecast for tomorrow and Friday which would be very welcome if it eventuates.
The Australian shipping stem is showing 4.09Mt of total grain on the lineups for June, up from 3.96Mt last week. Wheat is at 2.93Mt up from 2.83Mt, barley is at 467kt down slightly from 480kt, canola is unchanged at 406kt and sorghum is at 289kt up from 243kt.