Corn closed lower in overnight trading to buck the stronger trend seen in offshore markets.
- Chicago December wheat up US3.75c/bu to 565.5c/bu;
- Kansas December wheat up 1.5c/bu to 641.5c/bu;
- Minneapolis Dec wheat up 1.75c/bu to 710.75c/bu;
- MATIF wheat Dec up €0.75/t to €232.25/t;
- Black Sea wheat has not quoted since 11 August;
- Corn December down 5c/bu to 470c/bu;
- Soybeans May 2024 up 12.25c/bu to 1354.75c/bu;
- Winnipeg canola May 2024 up C$9.70/t to $698.30/t;
- MATIF rapeseed May 2024 up €5.25/t to €444.25/t;
- ASX January 2024 wheat down A$3/t to $385/t;
- ASX January 2024 barley unchanged at $323.50/t;
- AUD dollar up 42 points to US$0.6434.
China is now back to the No. 1 destination for wheat and barley, with reports this week of around 125,000t of barley being booked this week, and maybe as much as 250,000t of wheat. This puts both grains on the sunny side of 2 million tonnes (Mt) booked this marketing year which started October 1.
US corn is now close to printing two-year lows as it printed a new swing low, struggling under 2 billion bushels in ending stocks as export sales waned again. Soybeans were the opposite, with talk that China will import over 102Mt pushing the boards higher. South American weather will continue to be the focus and while it’s early days, conditions there are a little dry.
The ASX eastern Australia January wheat contract traded to A$385/t yesterday, off $2/t from the previous close. Values in Western Australia retracted $2/t on barley to $358/t FIS Kwinana. Wheat APW multigrade values were down a similar amount to around $408/t. The flow of harvest continues to build some selling pressure and bleed local values. Protein spreads have also been building some distance between APW1 now as the Queensland and northern New South Wales crop is reportedly to be mostly lower protein.
A wet week is forecast for the east coast, with headers going overtime this week to get in front. Cool temperatures and green grains are not helping progress, but we are still ahead of standard schedule by about two weeks.
The pending rain event has moved to the front of the forecast, gaining confidence. Moree in northern NSW is for example forecast to get 40mm, slightly lower than what was predicted a week ago, and falling mainly on Sunday. Encouraging for the sorghum grower is another pattern that is building from November 14-16. Anecdotally, many are suggesting totals of more than 50mm are needed to get a full late sorghum plant, with any shortfall probably pushing area to cotton instead.