US markets were closed for the July 4 holiday. Winnipeg canola fell almost 4pc.
- MATIF wheat September contract up €8.75/t to €343.25/t;
- Winnipeg canola November 2022 contract down C$31.70 to $846.80/t;
- MATIF rapeseed November 2022 contract down €6/t to €667/t;
- ASX July 2022 wheat contract unchanged at A$418/t;
- ASX Jan 2023 wheat contract down $0.70/t to $426/t;
- AUD dollar firmer at US$0.687.
It appears that Egypt’s GASC has booked another 444,000t of wheat at $416/t. Of the nine cargoes booked, Russia picked up five, France three and Romania one. The cargoes were reportedly booked via private negotiations with trading houses without issuing an international tender. GASC typically purchases wheat through tender, but Egypt’s supply minister said in May that the cabinet had approved direct purchases from countries or companies. Wheat prices falling sharply in recent days has created more buying interest.
Sanctions-hit Russia reduced its grain export taxes sharply last week to support shipments in the July-June marketing season as they harvest a reportedly near record wheat crop.
The European Commission has pegged usable production of soft wheat, in the EU at 125.0 million tonnes (Mt), down from 130.4Mt projected a month ago (130.1Mt harvested in 2021-22). The Commission cited reduced yields in several countries including France, Poland, Romania and Spain. Exports were unchanged at 38Mt, which would be a record for the bloc.
Markets started the week off very quiet, with the US holiday and markets closed bids and offers were slow. New crop grower bids were softer by $5-10/t from Fridays bids on wheat. Barley was also off $10/t, canola also dipped and suspect we see further downside again today with both Matif and Winnipeg markets lower overnight.
NeuRizer has signed a $1.5 billion offtake agreement with South Korea’s Daelim Co Ltd to supply 500,000 tonnes of urea per year from the company’s South Australia NeuRizer Urea Project.
Queensland is looking at a dry week with less than 5mm forecast. Rainfall is set to continue this week with light falls in most New South Wales cropping regions, heavier totals expected in central and eastern NSW (10-100mm). South Australia and Victoria are looking at less than 15mm in most areas (some spots up to 25mm). Most Western Australian cropping areas have less than 15mm on the forecast with the heavier totals expected in the Great Southern region.