Canola gained 3pc on Friday. US grains markets eased 2pc. Brent crude eased at the end of a week of solid price gains. The US dollar index plumbed 5-month lows. Friday’s Dow closed little changed having, the previous day, tested 7-month highs.
- Chicago wheat March 2023 contract down US22 cents per bushel to 761/bu;
- Kansas wheat March 2023 contract down 19.5c/bu at 870.75c/bu;
- Minneapolis wheat March 2023 contract down 165.7c/bu to 921.25c/bu;
- MATIF wheat March 2023 contract down €4.75/t to €307.75/t;
- Black Sea wheat March 2023 contract down US$1.75/t to $317.75/t;
- Corn March 2023 contract down 14.25c/bu to 646.25c/bu;
- Soybeans March 2023 contract up 9.75c/bu to 1446.5c/bu;
- Winnipeg canola March 2023 contract was up C$28.90/t to $841.70/t;
- MATIF rapeseed February 2023 contract down €18.75/t to €566.75/t;
- ASX Jan 2023 wheat contract settlement down A$2.50/t to $399.50/t;
- ASX Jan 2023 barley contract unchanged at A$318/t;
- AUD dollar weaker at US$0.678.
International
Buenos Aires Grain Exchange pegged the Argentine wheat crop at 12.4Mt but warned that further reductions were possible due to lower-than-expected yields during harvest. Due to earlier frosts and dryness, yields in the northern cropping regions are 31pc below average. Harvest progress stands at 23pc this week, vs 45pc last year. Argentine soy planting was 29pc complete, down 17pc from last year.
Argentine 2022-23 wheat exports could reach their lowest level in eight years at just 6.5Mt, due to the impact of a prolonged drought, the Rosario Grains Exchange (BCR) said on Friday.
Indian Government data says farmers have planted 21.2Mha of wheat since 1 October. This is a 6pc increase from last year, reflecting record high prices and good soil moisture levels. Farmers have also increased rapeseed area to 7.7Mha as of 2 December, up from last year’s 6.9Mha.
Nord Céréales, which runs France’s third largest grain export silo at Dunkirk port, has shipped its biggest volume in over 10 years for the first five months of the season, it said on Friday, illustrating a fast pace of French exports.
StatsCan estimates the Canadian 2022 wheat crop at 33.8Mt and canola at 18.2Mt. Wheat production was revised 879,000t lower. Durum wheat was revised down by 674,000t and canola was revised down by 925,000t.
US corn export sales as of 24 November were down 48pc from the previous year. Current sales to some of the US biggest markets including China, Japan, Canada and Colombia, are down 71pc.
Importers in Thailand have reportedly purchased around 123,000t of feed wheat from Australia, at $349/t C&F for both Jan and June shipment.
The US Senate passed legislation on Thursday to avert a rail strike. The bill adopted a tentative agreement reached in September between union leaders and freight operators. Four of the 12 unions representing rail workers have since rejected the deal, setting up the impending work stoppage.
China’s central bank will focus on supporting the slowing economy, People’s Bank of China Governor Yi Gang said on Friday, adding that domestic consumer inflation is likely to stay moderate in 2023. The central bank’s accommodative policy will help support China’s economic recovery and employment, Yi said. “Our focus is growth right now,” adding that China’s economic growth is slower than expected due to the impact from the COVID-19 pandemic and other headwinds.
Australia
Local markets rounded out the week down $20-30/t across all commodities. Harvest pressure has hit and crops continue to come off in a rapid fashion now with clear weather. ASX wheat contract settled at $399.50/t on Friday, the lowest since the middle of this year.
With clear skies and warmer weather harvest is finally getting a good run with some impressive yields and variable quality into bins. Rainfall across southern Qld will be welcome for sorghum crops that are either in the ground or yet to be planted.
The forecast for the next 8 days has some widespread showers developing but totals are expected to be less than 10mm except for southern WA and southeast Vic where totals are expected to be 10-25mm.
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