Markets made modest gains overnight, soybeans and wheat closed about 1pc firmer.
- Chicago wheat December contract up US8 cents per bushel to 849.25c/bu;
- Kansas wheat December contract up 8c/bu at 949.75c/bu;
- Minneapolis wheat December contract up 9c/bu to 962.5c/bu;
- MATIF wheat December contract up €2.75/t to €338.75/t;
- Black Sea wheat December contract up $0.50/t to $328.75/t;
- Corn December contract up 5.75c/bu to 684c/bu;
- Soybeans November contract up 19c/bu to 1391.5c/bu;
- Winnipeg canola March 2023 contract was up C$4/t to $877.70/t;
- MATIF rapeseed February 2023 contract up €6/t to €638.50/t;
- ASX Jan 2023 wheat contract down A$6/t to $494/t ;
- ASX Jan 2023 barley contract up A$1/t to $341/t;
- AUD dollar firmer at US$0.628.
The Russian foreign ministry said on Thursday that Moscow was ready to boost exports of food and fertilizers to help avert a global food crisis, but was being blocked from doing so by the United States. Foreign Ministry spokeswoman Maria Zakharova said Washington was “blackmailing” and “persecuting” those that try to trade with Russia and was therefore compromising global food security.
“There are active and intensive discussions going on, on many fronts,” Stephane Dujarric, spokesman for the UN’s secretary-general, said in a media briefing on Wednesday when asked where talks over export corridor stand.
Russian Representative to the UN Dmitry Polyanskiy told reporters there must be practical results for Russia for it to back the extension of the deal. “We will look at the practical results, not some kind of wishful thinking,” he said, adding, “practical results are very modest.” He also said Russia was not yet convinced the deal needed to be extended, labeling the export of Russian fertilizer and food products “the most important thing.” Polyanskiy also said his country would reassess its cooperation with UN Secretary General Antonio Guterres and his staff if they were to send experts to Ukraine to inspect downed drones the West said were made in Iran.
Ukraine’s central bank chief says he believes the grain export deal will be extended and that is built into its forecasts.
Stratégie Grains said EU corn production will fall to 50Mt this year, a “calamitously low” level, 2.5Mt lower than its previous estimate and 28pc lower than last year. Users have imported massive amounts from Ukraine and Brazil to offset the anticipated shortfall, allowing the market “some breathing space”. It raised the 2022-23 EU wheat crop forecast by 1.4Mt to 125.5Mt, still down 3pc on previous year.
The Mississippi River was reopened to one-way traffic near Hickman, Kentucky, the US Army Corps of Engineers dredging the channel deeper following the grounding of barges, according to the US Coast Guard.
Multinational chemical company and fertilizer manufacturer, Yara, cut its European ammonia output to just 57pc of capacity in the third quarter as it struggled with swings in natural gas prices.
Eastern Australian prices continued to rally yesterday. Cash wheat grower bids gained another $5/t. Canola was also $5/t stronger and barley also showed a touch of firmness.
New crop markets remain gun shy on the offer side, while the old crop execution program creates further headaches. Old crop markets rallied a further at least $10/t for grain with ready access allowing it to be moved promptly on a truck to a destination.
There have been some significant rainfall totals overnight with Moree copping 100mm and Narrabri 75mm with more rain on the forecast for the next couple of days. The relentless wet weather will continue to chip away at production prospects while the logistics nightmare rolls on with further road closures and access issues.