Markets

Daily Market Wire 28 October 2022

Lachstock Consulting, October 28, 2022

Lower prices outnumbered higher prices overnight and moves were small. Eastern Australian wheat eased the 1pc it gained the previous day. The US dollar index gained a little, as did the Dow and Brent crude oil.

  • Chicago wheat December contract down US2 cents per bushel to 838.5c/bu;
  • Kansas wheat December contract down 8.5c/bu at 932.25c/bu;
  • Minneapolis wheat December contract down 1.5c/bu to 950.5c/bu;
  • MATIF wheat December contract up €2.25/t to €336.50/t;
  • Black Sea wheat December contract down US$1/t to $320.50/t;
  • Corn December contract down 2.75c/bu to 682.25c/bu;
  • Soybeans November contract up 0.5c/bu to 1382.25c/bu;
  • Winnipeg canola March 2023 contract was down C$6.10/t to $874.20/t;
  • MATIF rapeseed February 2023 contract up €1.50/t to  €641.75/t;
  • ASX Jan 2023 wheat contract  down A$5/t to $488/t ;
  • ASX Jan 2023 barley contract unchanged at A$340/t;
  • AUD dollar weaker at US$0.645.

International

UN aid chief Martin Griffiths said on Wednesday he was relatively optimistic the export corridor deal would be extended beyond November.
Russia on Thursday said provisions of the deal to improve Russian agricultural and fertiliser exports were not being met, and that Moscow was yet to decide whether the agreement should be extended beyond the 19 November deadline. Foreign Ministry spokeswoman Maria Zakharova told reporters the West had not taken sufficient steps to ease sanctions to facilitate Russian exports. 

The so-called “suspicious object” reported in the shipping corridor was cleared as non-threatening, the UN said on Wed, meaning that traffic can resume. However, there remains a large backlog of vessels, after the pause in traffic.

The Buenos Aires Grain Exchange has maintained 2022-23 corn area at 7.3Mha, with 22pc of planting complete, and maintained at 15.2Mt its estimate of 2022-23 wheat production. 

A second trading house is believed to have matched the lowest price of $373.00/t c&f offered during negotiations on the Pakistan tender. The lowest offer on Wednesday was believed to have been submitted for 120,000t. A second offer reportedly matched the $373.00/t c&f for 260,000t. Other traders are being asked by the TCP to match the lowest price for the remaining 120,000t volume in the tender. Traders said they believed Russian wheat would be chosen to supply Pakistan, but technically offers are optional origin with the source country being declared upon shipment.
 Taiwan Flour Millers’ Association purchased 38,515t milling wheat from the US for Dec shipment from the PNW ports, incl. 20,625t DNS (14.5% min. protein) at $417.73/t fob, 11,220t HRW (12.5%) at $424.58/t fob and 6,670t SW (9.5%) at $345.87/t fob. Freight costs at $47.95/t. 

Jordan made no purchase in a recent tender for 120,000t feed barley. A new tender (2 Nov) has been issued for the same volume for Mar/Apr shipment. 

Australia

There continues to be little traded in local markets and prices yesterday were little changed. 

Better than expected canola yields are harvesting in WA and early canola is harvesting in the NSW Central West. 

All eyes are on the sky at the moment and while there are a few sunny dry days on the way, the forecast for next week is a major concern with 15-50mm expected over eastern Australia and South Australia from Sunday into next week.
Road and rail line closures continue to cause headaches and, with harvest underway in parts of Qld and some areas of NSW, pressure will start to build. Grain is reportedly still moving although taking longer routes to get around closures. 

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