Markets

Daily Market Wire 24 August 2022

Lachstock Consulting, August 24, 2022

Grains, oilseeds and crude oil gains of 2-3pc were common overnight.

  • Chicago wheat December contract up US12.25 cents per bushel to 800.5c/bu;
  • Kansas wheat December contract up 13c/bu to 879c/bu;
  • Minneapolis wheat December contract up 11.5c/bu to 912c/bu;
  • MATIF wheat December contract up €9.25/t to €326/t;
  • Black Sea wheat December contract up $1.25/t to $340.50/t;
  • Corn December contract up 26.25c/bu to 655.25c/bu;
  • Soybeans November contract up 25.75c/bu to 1461c/bu;
  • Winnipeg canola November 2022 contract was up C$3.60/t to $850.40/t;
  • MATIF rapeseed November 2022 contract up €12.75/t to €635.50/t;
  • ASX Jan 2023 wheat contract up A$4/t to $391/t;
  • ASX Jan 2023 barley contract up $5/t to $A305/t;
  • AUD dollar firmer at US$0.693.

International

Egypt’s GASC bought 240,000t wheat directly from Russia yesterday, with “talks ongoing” and more purchases said to be possible. Shipment for the six 40,000t cargoes is Sep/Nov and price around US$368/t C&F.

Exports of key Ukrainian agricultural commodities have fallen by almost half since the start of the Russian invasion compared to the same period in 2021, according to Agriculture Ministry data.

Japan’s Ministry of Agriculture, Forestry and Fisheries (MAFF) is seeking to buy 118,881t food quality wheat from the US, Canada and Australia in regular tenders that will close on Thursday.

Agriculture and Agri-Food Canada (AAFC) said crop yields were higher than expected, leading it to revise upwards its August projections. Season 2022/23 all wheat production was raised by 0.8Mt, to 34.5Mt (21.7Mt previous year) and exports were increased by 0.6Mt, to 23.0Mt (15.0Mt). Barley production forecast was raised by 0.3Mt, to 9.4Mt (7.0Mt) and exports seen 0.4Mt higher, at 3.5Mt (2.6Mt).

European agencies, among them JRC MARS, report that extreme hot and dry conditions in large parts of Europe, notably in Spain, France, central and northern Italy, central Germany, Hungary, Romania, Slovenia and Croatia, continue to adversely impact 2022/23 summer crop yield potential, especially maize, sunflower and soybeans.

Australia

Local markets lifted a fraction yesterday. New crop trade wheat bids were $4-5/t higher. Grower bids remained steady and the basis now has widened to minus $20/t. Clear Grain Exchange dealt more than 9000t wheat and barley yesterday.

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