In other markets Black Sea wheat was quoted US$2.25/t higher, soybean oil was down 2pc and the Dow Jones Industrials Average steadied.

NATO allies have begun sending new forces to bolster Eastern European members defenses. Given the global exposure to both the Russian and Ukrainian supply chain, the tension has impacted ag and energy markets.

Meanwhile in South America, rains have alleviated some of the more dire production concerns in Argentina, but the impact of the heat is harder to gauge. The longer-range forecast has turned a little dryer and needs to be watched.

Kansas wheat conditions dropped another 3pc good to excellent since the previous report three weeks ago.

The freight market continues its recent decline, with markets showing macro concern around the conflict in the Black Sea region, along with iron prices softening into the Chinese New Year and the Winter Olympics. China’s monetary policy is loosening, but so far this has not been enough to turn the tide on the sentiment in the freight markets. The Baltic index has been down 12 days straight now.

Algeria is looking for 50,000t of milling wheat.

Australia

Wheat markets kicked towards the back end of yesterday. Offshore values pushed higher and we saw more bids step in and hit the offers across the east coast. South Australian wheat remained well bid, being up A$5/t by day’s end.

Barley picked up a bid in SA and Western Australia for nearby export demand.

Canola remained lucklustre. Continued international strength overnight will continue to flow through to local markets today, and we can expect liquidity to continue to be bid through the market.

Today looks like a dry one for most of Australia’s growing regions with the exception of SA, where the Eyre Peninsula and Adelaide Plains could see falls of 25-50 millimetres.