Daily Market Wire 8 December 2022

Lachstock Consulting, December 8, 2022

Global wheat prices gained about 2pc, soybeans and canola a little less. Brent crude eased yet another 3pc totalling 11pc fall in 5 trading days.

  • Chicago wheat March 2023 contract up US20.5 cents per bushel to 749.5/bu;
  • Kansas wheat March 2023 contract up 18.75c/bu at 848.75c/bu;
  • Minneapolis wheat March 2023 contract up 6c/bu to 902c/bu;
  • MATIF wheat March 2023 contract up €5.75/t to  €307/t;
  • Black Sea wheat March 2023 contract up US$0.50/t to $317.50/t;
  • Corn March 2023 contract up 4c/bu to 641.25c/bu;
  • Soybeans March 2023 contract up 15.75c/bu to 1477.25c/bu;
  • Winnipeg canola March 2023 contract was up C$12.70/t to $852.40/t;
  • MATIF rapeseed February 2023 contract down €0.25/t to €569.50/t;
  • ASX Jan 2023 wheat contract settlement down A$1/t to $380/t;
  • ASX Jan 2023 barley contract unchanged at A$310/t;
  • AUD dollar firmer at US$0.672.


China announced a rollback of COVID-19 restrictions. PCR tests and health codes will no longer be checked for travel between regions. People who have mild symptoms will be allowed to isolate at home. The government can still impose lock downs, but to buildings, floors or apartments instead of neighbourhoods, districts or cities. Those lock downs would also be lifted more quickly, and schools could remain open with student attendance if there was no wider campus outbreak. 

Black Sea market analyst SovEcon raised its 2022-23 Russian wheat export forecast by 200,000t to 43.9Mt as the pace of shipments has increased in the final quarter of 2022. SovEcon expects Russia to export 12.7Mt of wheat during the current quarter, up 33pc from the same period last year. It also expects Russian wheat exports to slow “substantially” in early 2023 as wintry weather is likely to slow activity in the Black Sea and river navigation within the country. A lack of grain cars and stronger competition from Ukraine and Australia are also expected to slow Russian wheat shipments during the first half of next year.
 European Commission data shows cumulative soft wheat exports from July 1 to December 4 at 14.49Mt, up 3.5pc from the previous year. France has shipped the bulk of it with 5.89Mt, Algeria has been the biggest buyer at 1.975Mt. Corn imports are at 12.65Mt, more than double last year’s 5.77Mt, with Brazil the leading supplier at 6.25Mt followed by Ukraine with 5.49Mt.

India’s Meteorological Department reports that as at 6 Dec, cumulative post-monsoon rainfall is estimated to be 21pc above the long-term average, with excessive or normal rainfall at 83pc of monitoring stations.  
 South Korea’s Major Feedmill Group (MFG) bought about 60,000t feed wheat, expected to be sourced from Australia, at $350/t c&f, including a surcharge for additional port unloading for Mar/Apr shipment.
 Taiwan millers have purchased 43,000t US milling wheat, of various grades with prices ranging from $323-402/t C&F for Jan-Feb shipment. 

Japan is seeking 70,000t feed wheat and 40,000t feed barley via tender, for March shipment.


Wheat markets yesterday remained steady. Delivered markets held their ground and ASX eastern wheat Jan contract traded down to $378/t then back up to $380/t by the close. 

Malt barley in NSW continued to bleed lower with pressure of more malting grade coming off the header than initially thought possible, mostly through the Wimmera.

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