All overseas markets dropped overnight. US wheat fell 4-6pc. Soybeans lost 6pc and corn weakened 4.5pc.
- Chicago wheat September contract down US39 cents per bushel to 807c/bu;
- Kansas wheat September contract down 51.50c/bu to 862c/bu;
- Minneapolis wheat September contract down 42c/bu to 948c/bu;
- MATIF wheat September contract down €11.50/t to €331.75/t;
- Black Sea wheat September contract down $9.25/t to $361.25/t;
- Corn September contract down 27.50c/bu to 592.25c/bu;
- Soybeans November contract down 79.75c/bu to 1337c/bu;
- Winnipeg canola November 2022 contract down C$18.20 at $828.60/t;
- MATIF rapeseed November 2022 contract down €3.25/t to €663.75/t;
- ASX July 2022 wheat contract unchanged at A$418/t;
- ASX Jan 2023 wheat contract down $1/t to $425/t;
- AUD dollar weaker at US$0.680.
Demand shemand. The clean out isn’t over – capital flow still all heading for the door even though the global consumer has awoken from their slumber. Egypt and Pakistan, Algeria and Saudi put their hands up, but it doesn’t seem to matter.
Corn market needs to find a record yield and there are a few cracks on the weather front.
Fundamentally, the backdrop is very similar to what it was US$2/bu ago. It’s a fascinating exercise around market phycology – it’s all about bearish inputs at the moment and, while the market is in liquidation mode that’s all we will focus on.
Europe’s largest economy registered its first monthly trade deficit since May 1991. German imports rose 2.7pc on the month, more than economists had expected, while exports fell 0.5pc. The divergence led to a gap of €1 billion ($1.04 billion), which hadn’t been seen since just after the country reunited more than 30 years ago. Warning on Monday that Germany faced a “historic challenge,” chancellor Olaf Scholz added that “the crisis won’t pass in a few months” because Russia’s war in Ukraine “has changed everything, and supply chains are still disrupted by the pandemic”.
Local markets again softer with sellers struggling to find buyers.
Another wet day for norther New South Wales with falls ranging from 5-100mm. Waterlogged paddocks not getting the time to dry out and farmers now suggesting a reduction in area able to be sewn here.
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