Rain came to the US Great Plains helping wheat markets ease. Oilseeds firmed.
- Chicago wheat May contract down US18.25cents per bushel to 1020c/bu;
- Kansas wheat May contract down 14.25c/bu to 1070.75c/bu;
- Minneapolis wheat May down 9.25c/bu to 1099.5c/bu;
- MATIF wheat May contract down €0.25/t to €363.75/t;
- Black Sea wheat July contract down $1.25/t to $353.75/t;
- Corn May contract up 1.25c/bu to 757.75c/bu;
- Soybeans May contract up 26c/bu to 1645.5c/bu;
- Winnipeg canola November 2022 contract up C$14.50 /t to $1008.50/t;
- MATIF rapeseed November 2022 contract up €1/t to €793/t;
- ASX July 2022 wheat contract down A$2/t to $401/t;
- ASX Jan 2023 wheat contract up $2/t to $407.50/t;
- AUD dollar weaker at US$0.748.
Rain on the Plains – Texas got a drink which flushed out some selling on the board ahead of the USDA monthly WASDE report
Brazilian crop agency Conab cut its soybean outlook to 122.4 million tons (Mt) and raised its corn forecast to 115.6Mt. This, combined with the USDA’s weekly export sales report shaped trading.
Export sales for US grains landed within the estimates of traders surveyed by The Wall Street Journal this week. The USDA reported Thursday that across both the 2021/22 and 2022/23 marketing years, wheat sales totalled 379,300Mt, while corn sales came in at 927,600 tons and soybean sales totalled 1.1Mt. China was the leading buyer of US soybeans this week, purchasing 435,700 tons of soybeans for delivery in the 2021/22 marketing year. Other leading buyers include Mexico, Egypt and Canada
The ongoing battle between food and fuel is hotting up in the US. The Trump administration lifted a ban on selling E15 during the summer months in the US but was quickly shut down by the Federal Appeals Court. The Renewable Fuels Association is pushing the idea that E15 would reduce the cost of gasoline to the consumer but would need an executive order from the Biden administration and an EPA waiver – no mean feat.
Local markets are rounding out the trading week fairly steady again. Themes have not changed and values remain largely unchanged. Some buying interest popped up for prompt wheat into Melbourne/Geelong homes which saw the bid side stronger by $5/mt. It’s the same old story of tight logistics causing the issues.
Barley markets remain thin as offers are hard to come by.
Eastern and South Australian canola bids were $10/t lower yesterday. WA values remain strong with new crop bid $1105/mt for non-GM.
Port Kembla’s rail nightmare continues to cause export execution headaches. A wet weather induced landslide on the Port Kembla rail line will see the line restricted to one line for all rail, expected for some 4-6 months and will most likely halve the rail capacity into Port Kembla terminals.
The 8-10 day weather maps continue to improve for southern NSW, Vic and SA. Early planted crops in southern NSW are looking for that next drink while growers in Victoria and South Australia now getting ready to ramp planting up with a wide spread 15-25mm forecast.