Daily Market Wire 31 May 2023

Lachstock Consulting, May 31, 2023

Markets fell between 2pc and 4pc. Crude oil gapped 5pc lower.

  • Chicago wheat December contract down US21.75c/bu to 625.75c/bu;
  • Kansas wheat December contract down 30.75c/bu to 778.75c/bu;
  • Minneapolis wheat December contract down 24.5c/bu to 800.5c/bu;
  • MATIF wheat December 2023 down €4.50/t to €226.25/t;
  • Black Sea wheat December contract down US$3.50/t to $264.25/t;
  • Corn September 2023 contract down 9c/bu to 520c/bu;
  • Soybeans November 2023 contract down 36.25c/bu to 1153.25c/bu;
  • Winnipeg November canola contract down C$25.80/t to $628.10/t;
  • MATIF rapeseed November 2023 down €17/t to €394/t;
  • ASX January 2024 wheat contract down A$4/t to $391/t;
  • ASX January 2024 barley contract down $9.50/t to $333/t;
  • AUD dollar eased 22 points to US$0.6517.


At least eight drones targeted Moscow yesterday, the first attack to hit civilian areas in the city. The drones caused minimal damage, shattering some windows in residential buildings injuring two residents. Ukraine denied involvement, Russian President Putin warned of harsh retaliation. The Moscow strike came after another overnight barrage by Russian forces on Kyiv, with at least 20 drones attacking early yesterday, leaving one person dead.

The Russian Grain Union has pegged May grain exports at 5.8Mt, including wheat at 4.9Mt (3.8 times more than May 2022).

According to the Alberta Crop Report, for the week ending 23 May, spring crop planting was 85pc complete (55pc previous week, 73pc previous year, 80pc five-year avg), including spring wheat at 93pc (70pc previous week, 83pc previous year), barley at 84pc (54pc, 73pc) and canola at 79pc (39pc, 64pc). Sowing made rapid progress, with only small disruptions noted due to excessive rains across parts of the province. Fieldwork was expected to be concluded within the next two weeks, with rapid emergence of crops reported. Soil moisture conditions were rated at 7pc excellent/excessive, 77pc good/fair and 16pc poor. 

Recent rainfall in parts of China’s Henan province is causing concerns about 2023-24 wheat crop quality ahead of harvest. According to the Meteorological Administration, rainfall is expected in western Henan over the next few days.

The first rains of note in a year fell at the end of May in Argentina’s Pampas crop belt, paving the way for wheat planting in the east, the Rosario Board of Trade said, but it noted rain had not reached the west, so more than half of the Pampas was still too dry to plant wheat.

Brazilian agricultural consultancies AgRural and Safras & Mercado revised upward thier Brazilian corn crop estimates. AgRural by 2.3Mt to 127.4Mt, citing better yields with the safrinha harvest now underway and Safras & Mercado by 6.7Mt to 137Mt mainly owing to higher harvest outlook for the second (safrinha) crop owing to favourable weather conditions.  

EU soft-wheat exports have reached 28.4Mt as of May 28, compared with 25.5Mt over the same period last year. Barley exports are at 5.93Mt, down from the 6.84Mt exported last year. Corn imports are at 24.3Mt, significantly higher than the 15.1Mt imported in the previous year. 


The local markets remained sluggish yesterday, with the usual current crop markets continuing to tick over with ASW1 in WA trading around $360/t FIS. There was interest on Clear Grain Exchange in SA for lower grade wheat and sorghum found a bid under it again late in the day through northern NSW and Queensland. New crop markets were largely unchanged on the boards for the day. 

The 8-day forecast is continuing to build with WA now looking at 10-50mm for most cropping regions with southern WA tipped to get between 50-100mm. SA, Vic and southern NSW are looking at 5-15mm while central and northern NSW have 15-25mm on the forecast, with some pockets 25-50mm. Southern Qld is looking at 5-25mm. The timing would be perfect if this rainfall eventuates.


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