International

While the situation between Russia and Ukraine is largely unchanged, the market needs feeding, and a lack of escalation has resulted in risk off moves. In the meantime, the US is ramping up physical sales of wheat  with a marketing year high for the week of 676,000t versus the 300,000t needed to hit the USDA export estimate. There’s nothing like some geopolitical shenanigans to motivate the buyer.

Wheat futures have a few competing elements at the moment. Export sales are solid, the US HRW crop is in pretty shabby conditions, the threat of Black Sea export restrictions exists, and the steady USD is taking the sting out of things.

Corn is rock solid. Domestic US bids remain firm and the US sold 1.4 million tonnes versus the 580,000t needed to hit the USDA estimate. South American weather is less than perfect, although there is still plenty of time for corn.

Egypt’s GASC tendered after yesterday’s US market.

Palm oil has been on a tear, firstly driven by ideas of lower production, but now supported by Indonesia imposing a rule that exporters must set aside 20pc of their shipments for the domestic market to try and temper local pricing

Australia

Local markets remained steady yesterday with bids largely unchanged.  The main focus still remains in execution for the export pathway for the trade, and truck freight continues to be tight across the east coast. Containers are still hard to secure for packing for the pulse market as more bulk shipments start to appear on the stem for February and into March.

Widespread thunderstorm activity pushed across Victoria yesterday as the state saw wild storm conditions, with strong winds and downpours of rain, and more wild weather is forecast for Victoria today.

The early sorghum harvest is under way amongst weather delays. Reports exist of some downgraded sorghum already coming off, but it is early days yet and the crop is staggered.