Daily Market Wire 6 June 2023

Lachstock Consulting, June 6, 2023

Rapeseed rallied 4pc. Offshore wheat markets firmed. Corn, beans, canola eased.

  • Chicago wheat December contract up US3.5/bu to 655.5c/bu;
  • Kansas wheat December contract up 9c/bu to 812.5c/bu;
  • Minneapolis wheat December contract up 15c/bu to 827c/bu;
  • MATIF wheat December 2023 up €5.75/t to €235.50/t;
  • Black Sea wheat December contract up US$0.25/t to $263.75/t;
  • Corn September 2023 contract down 5.25c/bu to 530.25c/bu;
  • Soybeans November 2023 contract down 4c/bu to 1179.75c/bu;
  • Winnipeg November canola contract down C$6.50/t to $631.10/t;
  • MATIF rapeseed November 2023 up €15.50/t to €428.50/t;
  • ASX January 2024 wheat contract down A$3/t to $381/t;
  • ASX January 2024 barley contract down $8/t to $325/t;
  • AUD dollar gained 10 points, to US$0.6617.


Saudi Arabia bought 624,000 tonnes of wheat (12.5pc protein) in an international tender for September-October shipment the state buyer said on Monday for an average price of $261.76/t c&f. 

The European Union will extend restrictions on imports of Ukrainian agricultural products imposed by five member states until September 15, the commission said on Monday. The bloc will “phase out by 15 September” the measures affecting Ukrainian wheat, maize, rapeseed and sunflower seed that were adopted due to “logistical bottlenecks” in Bulgaria, Hungary, Poland, Romania and Slovakia. 

TASS news agency quoted Russia’s foreign ministry as saying that it was continuing consultations with the UN over the Black Sea grain deal, and that ship inspections had resumed but said it saw no prospects for extending the deal. 

According to the Ukraine Ag Minister, if the Black Sea Grain Initiative stops functioning in its current form, Ukraine would be ready to continue exporting agricultural products without Russian backing. The government had already created a special insurance fund of around $547m for companies whose ships would come to Ukrainian Black Sea ports under a future new arrangement.

Ukrainian Danube River ports exported a record 3 million tonnes of food in May amid a significant slowdown in exports through its key Black Sea ports, the Ukrainian seaport authority said. 

Stratégie Grains revised up its 2023-24 rapeseed production forecast by 0.4Mt, to 20.4Mt (19.4Mt prior year) citing beneficial spring conditions in Germany, Poland, France and Romania. Sunflowerseed crop estimate was revised up by 0.1Mt, to a record 11.3Mt (9.2Mt), as good prospects in Romania and Hungary offset drought problems in Spain and planting setbacks in France due to cool, wet weather. 

The US has requested dispute settlement consultations with Mexico under the United States-Mexico-Canada Agreement, regarding the ban on use of GM maize in tortillas or dough, and the instruction to government agencies to gradually substitute GM maize in all products for human consumption and for animal feed. 

South Korea’s MFG reportedly purchased 55,000-65,000 tonnes of feed wheat, likely from Black Sea origins, with one consignment purchased at US$258.60/t c&f, for September shipment. 

Egypt’s GASC is seeking to buy wheat on FOB basis, for shipment between July 21-31 from all origins in a tender today. 


Local markets had a quiet start to the week with a nice positive forecast lining up for a large part of Aussie cropping regions, although it is still dry on the forecast for northern NSW and Queensland. The forecast has resulted in both old crop and new crop markets treading water for now until we see what eventuates, with values largely unchanged across the board.

ABARES forecast total winter crop production down 34pc in 2023-24 at 44.9 million tonnes, around 3pc below the 10-year average. Yield prospects are forecast to be below average due to the expectation of below average rainfall for winter and spring. Wheat production is forecast to fall by 34pc to 26.2Mt, slightly below the 10-year average. Barley production is forecast to fall by 30pc to 9.9Mt, around 11pc below the 10-year average. Canola production is forecast to fall by 41pc to 4.9Mt, around 15pc above the 10-year average.


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