US markets were closed on Monday. Other markets traded lower.
- Chicago wheat July contract untraded, Friday close was US1034.25c/bu;
- Kansas wheat July contract untraded, Friday close was 1105c/bu;
- Minneapolis wheat July contract untraded, Friday close was 1169.5c/bu;
- MATIF wheat September contract down €3.25/t to €388.25/t;
- Black Sea wheat July contract untraded, Friday close was $411.25/t;
- Corn July contract untraded, Friday close was 784.5c/bu;
- Soybeans July contract untraded, Friday close was 1702c/bu;
- Winnipeg canola November 2022 contract down C$37.50/t at $962.80/t;
- MATIF rapeseed November 2022 contract down €23/t to €737.25/t;
- ASX July 2022 wheat contract unchanged at A$458/t;
- ASX Jan 2023 wheat contract down $4/t to $469/t;
- AUD dollar firmer at US$0.695.
Ukrainian President Volodymyr Zelensky said Ukraine should expect “greater hostile activity” from Russia as the European Union considers whether the country should be formally considered for candidate status. EU27 member states leaders will meet this week to discuss the process.
US temperatures turned much hotter in mid-June with record high temperatures across the Corn Belt, after a relatively cool and wet corn planting season. According to data from WeatherTrends360, the second full week of June 2022, week-ending June 18, was the second hottest and ninth driest in 30+ years for the Corn Belt as a whole. Since the season is still early, the burst of hot weather wasn’t overly concerning initially, however, if this pattern continues, complications for the corn crop may begin to unfold quickly.
In Europe, after a super hot cycle the wheat growing belt is going to receive well over 1.5 inches over the next 2 weeks. The debate will be whether the rainfall is too late to help a mature crop.
Local cash markets relaxed after the sell off from Friday night but saw limited liquidity throughout the day. Spot demand has eroded as better weather is providing a good run in execution of deliveries, for now. More rain on the horizon late next week may provide more headaches for guys that are playing catch-up on sowing.
Urea price dipping below $1200/t drove plenty of action as the first round application is spent on canola.
Port congestion is still a major issue with delays in most major ports increasing this week. Wait times increased in Kwinana from 27 days last week to 28 days this week and in Newcastle it increased from 23 days last week to 26 days this week. There are currently 30 vessels anchored at Australian ports with only 3 vessels loading.
Qantas and Airbus joint investment in locally sourced sustainable aviation fuel is likely to provide ongoing support for Australian oilseeds in brassica crops such as canola, mustard and carinata which can all be processed into high quality aviation fuels.