Markets

Daily Market Wire 21 November 2022

Lachstock Consulting, November 21, 2022

US grain prices ended Friday close-to-unchanged. European markets, and US soybeans, firmed a little. Brent crude eased 2pc.

  • Chicago wheat December contract down US3.5 cents per bushel to 803.25c/bu;
  • Kansas wheat December contract down 3.75c/bu at 934.25c/bu;
  • Minneapolis wheat December contract down 2.25c/bu to 951.5c/bu;
  • MATIF wheat December contract up €1.25/t to  €325.75/t;
  • Black Sea wheat December contract down US$0.50 to $317.25/t;
  • Corn December contract up 0.25c/bu to 667.75c/bu;
  • Soybeans March 2023 contract up 11c/bu to 1433.25c/bu;
  • Winnipeg canola March 2023 contract was down C$2.70/t at $847/t;
  • MATIF rapeseed February 2023 contract up €10.75/t to €610.25/t;
  • ASX Jan 2023 wheat contract down $A3/t to $450/t;
  • ASX Jan 2023 barley contract unchanged at A$327.50/t;
  • AUD dollar weaker at US$0.667.

International

The UN welcomes the 120-day extension of the Black Sea Grain Initiative but hopes the next deal will extend beyond that timeframe. United Nations Conference on Trade and Development secretary general Rebeca Grynspan said there was still work to be done, especially on fertilizers, as there are around 300,000 tonnes of fertilisers blocked at Russian ports. She said there aren’t problems with US sanctions exemptions on Russian exports but the situation is more complex with the EU.

An onslaught of Russian missiles has left 10 million people in Ukraine without power, according to Ukrainian President Volodymyr Zelenskyy. While Ukraine has made significant advances against Russia in the southern and eastern parts of the country, its cities are struggling after air attacks on critical infrastructure and civilian areas. The situation has prompted the UN to warn of an even greater humanitarian crisis in Ukraine as winter approaches.

Russian officials signalled they are open to high level talks with the US on strategic stability, which is being taken as another small step towards hopes of an ultimate cease-fire. 

Argentina will only export 6.5Mt of wheat in the 2022-23 according to the Rosario Board of Trade, down from last week’s prediction of 7Mt (5-year average of 11.7Mt) . 
FranceAgriMer reports that soft-wheat plantings in France were 97pc complete as of 14 November, up from 92pc a week earlier and 98pc of the crop is in good to very good condition, same as previous week and year.
Indian farmers so far have planted wheat and rapeseed on nearly 15pc more area than a year ago, the latest data from the Ag Ministry showed. Wheat was planted on 10.1Mha as of 18 November, up from last year’s 8.8Mha. The area planted to rapeseed stood at 6.3Mha, up from last year’s 5.5Mha. 

Chinese customs reported October corn imports at 550,000t, down 58pc from last year, with cumulative Jan-Oct imports at 19.01Mt, down 27.5pc from last year. Wheat imports hit 1.24Mt in Oct, up over 150pc from last year, with Jan-Oct imports still down 3pc year-over-year at 7.87Mt.
Egypt’s GASC is understood to have purchased 60,000t milling wheat in a private deal, at $361.50/t c&f.

Australia

Local markets ended Friday mixed. Prompt markets held for wheat and barley while out the curve APW1 bids pulled away aggressively at the back end of the week, more quality wheat being discovered as harvest progressed in parts of NSW.
Canola markets also started to lose ground late on Friday with bids coming off $15-20/t with a combination of weaker offshore prices and harvest pressure, with a bumper canola crop coming off in WA. 

Eastern Australia’s rainy, hailing, windy and cold conditions did not make for ideal harvest weather! The Bureau of Meteorology said another vigorous cold front and westerly winds should cross parts of the south and east today. The forecast is looking promising for a dry week after today. 

. 

Grain Central: Get our free news straight to your inbox – Click here

HAVE YOUR SAY

Your email address will not be published.

Your comment will not appear until it has been moderated.
Contributions that contravene our Comments Policy will not be published.

Comments

Get Grain Central's news headlines emailed to you -
FREE!