- Chicago wheat December contract up US18.5 cents per bushel to 802c/bu;
- Kansas wheat December contract up 24.25c/bu to 868c/bu;
- Minneapolis wheat December contract up 19.75c/bu to 908.75c/bu;
- MATIF wheat December contract up €5.25/t to €328.25/t;
- Black Sea wheat December contract up $0.75/t to $346/t;
- Corn December contract up 10c/bu to 606.25c/bu;
- Soybeans November contract up 48c/bu to1417.75c/bu;
- Winnipeg canola November 2022 contract was up C$21.40/t to $843.30/t;
- MATIF rapeseed November 2022 contract up €15.50/t to €648.50/t;
- ASX Jan 2023 wheat contract down A$4/t to $410/t;
- AUD dollar firmer at US$0.697.
Markets have rallied mainly on the back of the underwhelming start to export corridor and the EU drought impact on corn production, with many estimates well below the USDA’s 68 million tonnes. Hot and dry weather continues to plague much of western Europe. More hot and dry weather is forecast in the coming weeks in key growing regions, including France, and is expected to cause further damage to crops already stressed by a dry spring and sweltering temperatures.
According to the USDA weekly drought report, the proportion of corn growing areas experiencing moderate to intense drought rose to 31pc from 29pc the previous week and the highest level since planting began in April. Soybean drought area rose to 28pc vs 26pc.
A Turkish bulk carrier is expected to arrive in the Black Sea port of Chornomorsk today and will be the first vessel to arrive at a Ukrainian port since the war began, a spokesperson for the regional administration of Odesa said. “The Turkish bulk carrier OSPREYS, flying the flag of Liberia, is heading from the Dardanelles Strait to the port of Chornomorsk,” “This will be the first vessel that has not been blocked in our ports since Feb. 24, heading to (collect) Ukrainian export grain.”
The Kremlin said on Thursday the deal to unblock Ukraine’s grain exports from the Black Sea was not a “one-time mechanism,” and that it hoped it would continue to work effectively. “This is not a one-time mechanism, but a mechanism that is designed to ensure the export of the grain that has accumulated in these ports,” Kremlin spokesman Dmitry Peskov said.
Turkish President Erdogan will meet Russian President Putin today in Sochi and will discuss the departure of the first ship and performance of Istanbul agreement.
“There will be an exchange of opinions about the first voyage with grain from Odessa.
“In broad terms, this is a good opportunity to assess efficiency of operations of the mechanism created owing to Istanbul agreements,” Mr Peskov said in a statement.
Algeria purchased around 720,000t to 780,000t milling wheat from optional origins at US$384.00 c&f for Sep/Oct shipment, with much of the volume expected to be sourced from the EU (France) and partly from Russia.
Flour millers in India have asked the government to scrap a 40pc import duty on wheat to soften local prices that have jumped 12-16pc in the past fortnight, according to Anjani Agarwal, president of the Rollers Flour Millers’ Federation of India.
Current crop markets continue to fall away with lack of buying demand. Wheat and barley markets remain largely offer side. Export pace continues to drop off for August and September. New crop wheat markets were softer with grower multi-grade bids off $3-5/t, barley bids were off $5-10/t and canola remained volatile with new crop bids down $25/t.
Flood warnings were issued for NSW central and southwest catchments. There is potential for widespread minor and major floods after very heavy rainfall on Thursday. Catchments of concern include the Upper Murray, Lachlan and Mitta Mitta Rivers.
The Albanese government has passed its Climate Bill, with a number of amendments, through the Lower House by 89 votes to 55. It locks in a 43 per cent emissions reduction target by 2030 and net zero by 2050 which is an update to Australia’s obligations under the Paris Agreement.