Daily Market Wire 5 June 2023

Lachstock Consulting, June 5, 2023

Markets firmed. Crude gained another 2pc Friday and gapped again in early Monday trade following weekend meetings.

  • Chicago wheat December contract up US8.25/bu to 652c/bu;
  • Kansas wheat December contract up 9.5c/bu to 803.5c/bu;
  • Minneapolis wheat December contract up 14.25c/bu to 812c/bu;
  • MATIF wheat December 2023 up €3/t to €229.75/t;
  • Black Sea wheat December contract up US$0.25/t to $263.50/t;
  • Corn September 2023 contract up 11.25c/bu to 535.5c/bu;
  • Soybeans November 2023 contract up 14.75c/bu to 1183.75c/bu;
  • Winnipeg November canola contract up C$3.90/t to $637.60/t;
  • MATIF rapeseed November 2023 up €7/t to €413/t;
  • ASX January 2024 wheat contract down A$4/t to $384/t;
  • ASX January 2024 barley contract unchanged at $333/t;
  • AUD dollar gained 38 points, to US$0.6607.


After the OPEC+ meeting yesterday it was announced that Saudi Arabia would make a 1 million bpd cut to its output in July on top of a broader OPEC+ deal to limit supply into 2024 as it tries to boost oil prices.

Buenos Aires Grain Exchange reported for week ending 31 May, the 2023-24 wheat planting was estimated at 6n percent complete (14pc previous year). Recent rains across the centre-west were deemed beneficial and replenished soil moisture levels, enabling farmers to commence fieldwork, but further precipitation was required. Total sown area forecast at 6.3 million hectares (Mha) (5.9Mha Ag. Ministry previous year), with output projected to recover to 18.0 million tonnes (Mt), (12.4Mt previous year).

StoneX revised upward its 2022-23 Brazilian maize production forecast by another 1.2Mt, to 133.8Mt (113.1Mt previous year).

According to the Saskatchewan crop report, for the week ending 29 May 2023-24 plantings advanced to 89pc complete (76pc previous year, 92pc five-year avg) with recent rains replenishing soil moisture levels. Spring wheat was at 91pc complete (75pc year ago), barley at 87pc (69pc) and canola at 84pc (66pc). Crops across the province were largely in good to excellent condition. Following recent rains, topsoil moisture levels were rated at 69pc adequate (63pc previous week, 56pc previous year) and 24pc short (31pc, 19pc) .

FranceAgriMer reported as at 29 May, common wheat crops rated 91pc good/excellent (93pc previous week, 67pc previous year), winter barley at 88pc (90pc, 65pc), spring barley at 93pc (95pc, 54pc) and maize at 92pc (94pc, 90pc). 

The Ukrainian Grain Association pegged 2023-24 grains and oilseeds production at 68.0Mt, down from 73.8Mt last year, including wheat at 17.9Mt (20.2Mt previous year), maize at 23.3Mt (27.3Mt previous), barley at 4.4Mt (5.8Mt), sunflowerseeds at 12.7Mt (11.1Mt), rapeseed 3.8Mt (3.6Mt), and soybeans at 4.4Mt (3.7Mt). 2023-24 grains and oilseeds export projected at 43.9Mt (56.4Mt), including wheat at 15.0Mt, maize at 19.0Mt, barley at 2.0Mt, sunflowerseeds at 1.2Mt, rapeseed at 3.5Mt, and soybeans at 3.0Mt. 

South Korea’s Nonghyup Feed Inc. reportedly purchased 64,000t feed wheat from optional origins, at US$258.70/t c&f, for Nov arrival. 


Feed grade wheat delivered Melbourne firmed at the end of last week as shorts were still in the market finding nearby offers. The rain on the forecast this week will be important as crop establishment will be key to outgrowing some of the current pest pressures impacting newly emerged crops.

There were some handy rainfall totals for the week ending 4th June, with southern WA picking up 10-50mm, SA 5-15mm, Vic and southeast NSW 5-25mm. The forecast is still looking promising for most cropping regions this week, except for Qld. WA is looking at 5-50mm with southern areas looking to pick up the bigger totals. SA has 10-50mm on the radar with the eastern half of the cropping belt looking to pick up the bigger falls. Most of Vic is looking at 25-50mm with parts of the east with 50-100mm on the forecast. NSW has 25-50mm, with pockets of the southwest looking at 50-100mm. Northeast NSW has less than 10mm on the forecast.


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