Wheat markets closed mixed and oilseed contracts closed higher in overnight trading.
- Chicago wheat March contract down US6.25cents per bushel to 790.25c/bu;
- Kansas wheat March contract down 3.5c/bu to 796.5c/bu;
- Minneapolis wheat March up 5c/bu to 944.75c/bu;
- MATIF wheat March contract down €1/t to €273.75/t;
- Corn March contract up 0.5c/bu to 611c/bu;
- Soybeans March contract up 34.5c/bu to 1425.75c/bu
- Winnipeg canola March 2022 contract up C$21.30/t to $1022/t;
- MATIF rapeseed February 2022 contract up €7.50/t to €760.75/t;
- ASX March 2022 wheat contract up A$4.50/t to $364/t;
- ASX Jan 2023 wheat contract up $10.50/t to $368.50/t;
- AUD dollar firmer at US$0.722.
Black Sea wheat was quoted US$1.50/t lower, and soybean meal was up 3pc.Wheat markets took a step back, with Minneapolis the exception. It put on more gains as the market starts to realise the impact on elevated row crops, and it will have to keep up to get area in the upcoming spring. Overall, markets are watching outcomes of meetings tied to potential conflict if Russia moves on Ukraine.
Taiwan bought 49,000t of US milling wheat for late March shipment, while Turkey’s state grain organisation has started to buy feed barley, with around 175,000t purchased in the latest tender. Algeria’s state agency OAIC is also believed to have purchased about 205,000t of optional-origin feed barley in its latest tender.
China’s soybean imports from the US nearly doubled from November to December. The latest data showed China imported 6.09 million tonnes, and the surge came from some cargoes being rolled into December from November due to storm damage to southern US ports. China’s imports from Brazil for December were down 43pc on the month. With another rally in soybeans, more support was provided to canola futures, and we saw a firming in Malaysian palm oil and European rapeseed futures.
Markets saw more strength yesterday across the boards with gains in offshore markets. Wheat was firmer by A$5-$6/t, and liquidity picked up through the South Australia port zone. We saw more SFW feed wheat trade across the east coast, with values up $10-$15/t week on week. Barley markets continued to be supported, with nearby demand creating opportunity for trade and growers. Canola was a few dollars stronger, but largely remains quiet after the recent pullback in the Aussie market.
We continue to see rain forecast for eastern states and SA. Eyre Peninsula is forecast to get falls of 25-50 millimetres, and some has already been recorded. Harvest is all wrapped up in SA now, and just parts of south-west Victoria are finishing the tail end, but look likely to run into more rain delays.
Source: Lachstock Consulting