Markets

Daily Market Wire 20 November 2023

Lachstock Consulting November 20, 2023

Friday’s markets weakened. The brent crude oil market gained about 4 percent almost equal to its fall the previous day. 

  • Chicago December wheat down US2.75c/bu to 550.75c/bu;
  • Kansas December wheat down 9.25c/bu to 618c/bu;
  • Minneapolis Dec wheat down 10.5c/bu to 715.5c/bu;
  • MATIF wheat Dec up €0.50/t to €226.75/t;
  • Black Sea wheat futures has not quoted since 11 August;
  • Corn December down 7.75c/bu to 467c/bu;
  • Soybeans May 2024 down 17.5c/bu to 1369c/bu;
  • Winnipeg canola May 2024 down C$10.20/t to C$705.60/t;
  • MATIF rapeseed May 2024 down €3.25/t to €441.25/t;
  • ASX January 2024 wheat up A$1.50/t to $389.50/t;
  • ASX January 2024 barley unchanged at A$335.50/t;
  • AUD dollar up 44 points to  US$0.6516.

International

A Greek owned ship chartered by Cargill, while sailing from the Ukrainian port of Pivdennyi on Thursday, was reportedly damaged by an explosion that was likely caused by a floating mine. The vessel carrying a cargo of wheat wasn’t severely damaged and was heading to Constanta in Romania for further inspection. 

Russia’s agriculture minister said on Friday that Moscow had begun free shipments of grain totalling up to 200,000 tonnes to several African countries. Ships headed for Burkina Faso and Somalia had already departed Russian ports, and additional shipments to Eritrea, Zimbabwe, Mali and the Central African Republic would soon follow. 

FranceAgriMer reported as at 13 Nov, the 2024-25 common wheat planting was 71pc complete (96pc previous year, 89pc avg), durum 21pc (70pc, 51pc) and winter barley at 84pc (99pc, 94pc). Common wheat condition rated 86pc good/very good (98pc previous year) and winter barley 86pc (98pc).

Buenos Aires Grain Exchange noted for the week ending 15 Nov, the 2023-24 wheat harvest was 20pc complete (10pc previous year). Factoring in reports of worse than expected frost damage, it cut forecast production by 0.7Mt, to 14.7Mt (12.2Mt previous year). Maize planting was 25pc complete (24pc). Recent rains were favourable for early sown crops, with conditions rated at 94pc fair/excellent (72pc). However, the delayed rainfall was expected to result in changes to planned acreage mixes. Owing to widespread frost damage, barley output projection lowered to 4.7Mt. With earlier dry conditions hampering sunflowerseed and maize planting intentions, soybean area forecast was increased by 0.2m ha, to 17.3m (16.2m last year). 

The European Commission has extended EU approval for use of glyphosate by 10 years. The renewal is based on European Food Agency and European Chemicals Agency safety assessments and subject to new conditions and restrictions, such as maximum application rates. 

Tunisia’s state grains agency reportedly purchased 25kt durum in a tender that closed on Friday at US$425.79/t. 

South Korea’s Major Feedmill Group (MFG) reportedly purchased 115,000t feed wheat at an estimated $270/t c&f for Mar arrival. While Feed Leaders Committee (FLC) purchased around 50,000t feed wheat, expected to be sourced from eastern Europe, at an estimated $270.48/t c&f for April arrival.

Australia

Local wheat markets traded sideways to slightly firmer last week. The ASX eastern Australia Jan 24 wheat contract Friday settlement price was A$389.50/t, $1.50/t firmer than previous day. Barley values continue to be supported by ongoing strong China demand. Grower selling picked up through southern markets through the week. 

All eyes will be on rainfall totals this week with a widespread 25-100mm expected through Qld and NSW and will either be very welcome for those that have finished harvest or a pain for those who haven’t. Most of Vic can expect 15-50mm, eastern SA has 10-25mm on the radar and WA is expected to be dry.

GIWA released its November Crop Report on Friday, revising production down 445kt from October. It noted late sown crops have struggled across the board and, combined with the short, hard finish to the season, most yields are below expectations and are well below average. Canola yields are much lower than previous years, although the overall state average will be more than 1.2 tonnes per hectare, which is close to long term average. Wheat production was revised down 275kt to 7.85Mt, barley was trimmed 190kt to 3.65Mt while canola was revised up 50kt to 2.27Mt. Harvest is on track to be mostly finished by the end of December, several weeks earlier than normal.

 

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