Russia attacked Ukraine’s main inland port across the Danube River from Romania on Wednesday, reportedly causing “serious” damage. Ukraine’s defence ministry said a grain silo was damaged at the Danube port of Izmail. Danube ports are working, but trade is complicated by both the logistical component and risks of further Russian shelling. 

The Kremlin on Wednesday restated its position on the Black Sea grain deal, saying it was ready to return to it “immediately” once its demands were met. President Putin spoke via telephone to Turkish President Erdogan, reiterating that a parallel deal improving terms for its own grain and fertiliser exports be implemented. President Erdogan emphasised the importance of the deal to global food security and confirmed President Putin’s upcoming visit to Turkey. 

According to Russia’s Defence Ministry, navigation through the Kerch Strait has been restricted for some vessels except for ships sailing during daylight hours along recommended routes. 

Manitoba Crop Report for the week ending 1 August reported localised rainfall across the province, mostly in the Interlake and Eastern regions. 2023-24 winter wheat harvesting progressed slowly as winter grain crops continued to dry out. Should conditions remain favourable, harvesting is likely to be more widespread in the coming week, with most winter crops currently in good/excellent condition. Reports indicate some canola crops are showing signs of drought stress, with conditions mostly rated fair/good.

Brazil’s Ministry of Industry, Trade and Services reported that cumulative marketing year (Mar/Feb) maize exports are at 7.5Mt (+7pc from previous year). Soybean exports are at 72.2Mt (+24pc).

GASC booked 360,000 tonnes of wheat in yesterday’s tender of which 60,000 tonnes was Romanian origin at $262.05/mt and the rest Russian at $264/t.

Australia

Local markets were firmer yesterday across the board with the AUD softening over the course of the day we saw a little bit of strength in wheat and barley pricing through old crop and new, however liquidity was still relatively thin. ASX Jan24 wheat leveled out at $405/mt which was up $9/mt from the previous day.

A decent rain band is forming offshore from WA which has plenty of hopes pinned to it to keep crops moving forward, with Geraldton and North Kwinana now desperate for rain. On the east coast there are some patchy showers forecast for the weekend but the front seems to be losing strength. Day time temps are currently moving higher which will continue to apply pressure to crops.

Australian Trade Minister Don Farrell said yesterday that he was hopeful the China barley dispute will be resolved within days. “As you know, we suspended our World Trade Organization (WTO) dispute on the basis that the Chinese would do a quick review of the tariff regime in respect of barley,” Farrell said in an interview with the ABC. “That runs out next week, so I’m hopeful that within the next few days we’ll get a positive decision by the Chinese.”