Macro moves saw the US dollar surge again, gapping firmer on Friday. The Australian dollar fell 2pc. Brent crude fell another 3pc, totalling 7pc from week earlier.
- Chicago wheat July 2023 contract down US3.75 cents per bushel to 771.75c/bu;
- Kansas wheat July 2023 contract down 7.75c/bu at 857.75c/bu;
- Minneapolis wheat May 2023 contract down 4c/bu to 914.75c/bu;
- MATIF wheat May 2023 contract up €1.50/t to €282.75/t;
- Black Sea wheat March 2023 contract down US$0.50/t to $304.25/t;
- Corn May 2023 contract up 1.75c/bu to 675.5c/bu;
- Soybeans May 2023 contract down 2.25c/bu to 1525.5c/bu;
- Winnipeg canola May 2023 contract up C$5.20/t to $828.90/t;
- MATIF rapeseed May 2023 contract up €1/t to €545.25/t;
- ASX Mar 2023 wheat contract up A$4.50/t to $381/t;
- ASX Mar 2023 barley contract unchanged at A$315/t;
- AUD dollar fell 2pc to US$0.692.
International
The UN Food and Agriculture Organisation (FAO) global food price index dropped for the tenth straight month in January and was 18pc below the March 2022 peak. The January decline was driven by a drop in prices of vegoils, dairy and sugar, while cereal grains and meat remained largely stable. Compared to last year, prices were up 1.3pc for meat, 2.7pc for dairy, 4.8pc for cereal grains and 2.8pc for sugar, while vegoils dropped 24.5pc.
FAO also reported most of the winter wheat crop for the 2023 harvest has been sown across the Northern Hemisphere and high prices likely boosted plantings in several key growing regions. In North America, US winter plantings likely rose to 8-year high and Canada’s wheat area is expected to rise 2pc year on year. EU plantings will likely hold near the 2022 level, India’s acreage may be a record, while Russian plantings could fall slightly due to ample domestic supply and low local prices. Ukraine winter plantings likely fell 40pc year on year due to “severe financial constraints, infrastructure damage and obstructed access to fields in part of the country.”
According to the Rosario Board of Trade, Argentina’s January soybean meal exports were the lowest since at least 2002. Exports are estimated at 1.06Mt, compared to the five-year average of 1.87Mt. The expiry at the end of December of a special FX rate for Argentina’s soy industry has subdued trading.
The Brazilian government has ended a tax exemption on imports of fuel ethanol, with immediate effect, according to the country’s Agriculture Ministry. Ethanol imports will now incur a tax of 16pc to enter Brazil until the end of the year. That levy will rise to 18pc in 2024.
The Taiwan Flour Millers’ Association has issued an international tender to purchase 48,100t grade 1 milling wheat to be sourced from the US. The deadline for submission of price offers in the tender is 9 Feb.
South Korea’s Major Feedmill Group (MFG) reportedly purchased around 60,000t feed wheat from optional origins (US, Australia, Romania or Bulgaria) at an estimated US$340/t c&f, May/Jun shipment.
Australia
Local markets finished up a touch on Friday. WA ASW1 values were firmer by $5/t, SA wheat saw some buying activity and Port Adelaide zone values were firmer. Barley bids and offers were relatively unchanged. The northern feed grains market remains tight, however reports of some downgraded sorghum reaching the market is helping some feed buyers. Canola values gained a couple of bucks.
CBH has loaded a 64,003t canola vessel at Albany late January for destination Europe. This was the largest vessel that CBH has loaded at Albany, both in cargo tonnage and vessel dimensions.
Clear Grain Exchange reported its largest trading week by volume last week at 246,495 tonnes and the highest number of buyers since Feb 2022.
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