Market changes overnight were relatively subdued, corn and oilseeds strengthening and wheat easing.
- Chicago wheat July contract down US11.5cents per bushel to 1097.5c/bu;
- Kansas wheat July contract down 6.75c/bu to 1169.5c/bu;
- Minneapolis wheat July unchanged at 1172.25c/bu;
- MATIF wheat September contract down €4/t to €361/t;
- Black Sea wheat July contract down $1/t to $357.75/t;
- Corn July contract up 10.25c/bu to 810c/bu;
- Soybeans July contract up 25.25c/bu to 1717c/bu;
- Winnipeg canola November 2022 contract up C$3.10/t to $1048.70/t;
- MATIF rapeseed November 2022 contract up €2.25/t to €831/t;
- ASX July 2022 wheat contract up A$5.50 to $416.50/t;
- ASX Jan 2023 wheat contract up $2/t to $429/t;
- AUD dollar firmer at US$0.745.
We are in a weather market, don’t forget. Drier forecasts in Brazil are starting to increase concern to global balances, particularly corn, where the safrinha corn belt remained dry, especially in central and southern Mato Grosso state. Luckily temperatures have been mild but there is a definite watch on how the forecast develops.
China is shopping. There was a US flash report of US soybeans sold which is unseasonal given that Brazil should be doing the business at this time of year. Some indications that COVID restrictions in China were being eased added fuel to the buying today.
Black Sea wheat regions particularly in Russia look amazing. Timely rainfall and good subsoil moisture should skew production estimates to the upper end of the range.
Local markets were firmer again yesterday. Wheat H2 grade is up $10/t for the week to $490/t and ASW1 up $7/t to $415/t. SA bids were up $5-10/t for wheat and $15/t for canola. New crop canola Kwinana bid was up $11/t to $1166/t.
NSW and Victoria both have scrapped their remaining COVID rules as of Friday. Household contacts of positive cases no longer are required to isolate for 7 days. This major change comes as both states believe they have passed the peak of the latest Omicron surges. Whether this provides any relief for the major logistics problems still being experienced is yet to be seen.
The rainfall forecast for next week is looking promising for all states, particularly SA.