Offshore wheat markets firmed overnight. Brent crude gained another 2pc.
- Chicago wheat May 2023 contract up US13.75 cents per bushel to 775c/bu;
- Kansas wheat May 2023 contract up 8.75c/bu at 883.5c/bu;
- Minneapolis wheat May 2023 contract up 8.25c/bu to 918.5c/bu;
- MATIF wheat May 2023 contract up €1.25/t to €291.75/t;
- Black Sea wheat March 2023 contract unchanged at US$305/t;
- Corn May 2023 contract up 3.25c/bu to 676.25c/bu;
- Soybeans May 2023 contract up 3.5c/bu to 1513.75c/bu;
- Winnipeg canola May 2023 contract down C$3.40/t to $826.80/t;
- MATIF rapeseed May 2023 contract up €0.75/t to €554.25/t;
- ASX Mar 2023 wheat contract down A$0.50/t to $385/t;
- ASX Mar 2023 barley contract down A$1.90/t to $327/t;
- AUD dollar eased 1/2pc to US$0.693.
Here we go again….Russia said yesterday that work to unblock Russian exports under the Black Sea grain deal was unsatisfactory, accusing the EU of failing to deliver on its promises, the TASS news agency reported. The comments, made by Russian Deputy Foreign Minister Alexander Grushko, reiterated Russia’s previous complaints that the Grain Corridor was not working properly as western nations, mainly the EU, are getting too much grain. With the expiry of the deal on the horizon we can expect more rumblings like this from Russia.
According to Brazil’s grain exporters’ association ANEC, February soybean exports are seen between 7.6Mt and 9.7Mt. Exports could exceed the previous February record of 9.1Mt set last year. January exports were limited by low supplies due to harvest delays.
Brazil is tipped to be the world’s largest corn exporter, beating the US for only the second time, reflecting surging grain exports to China. Brazil is forecast to export 50Mt of corn in the current season, according to the February WASDE. That’s up from the USDA’s January estimate of 47Mt and is higher than the 48.9Mt outlook for the US.
European Commission data reveals EU all-wheat exports for the week ending 5 Feb at 176,341t, cumulative at 20.0Mt (+6pc on previous year). Maize imports at 234,254t, cumulative at 16.4Mt (+68pc). Barley exports at 33,215t, cumulative at 4.9Mt (-30pc).
Refinitiv Commodities Research has pegged 2023-24 EU rapeseed production at 20.4Mt (19.6Mt last year), unchanged from before. Recent warm weather benefited crop prospects but concerns about dryness in France and Germany were noted.
Japan’s MAFF, seeks via 15 Feb tender, 70,000t feed wheat and 40,000t feed barley for Jul shipment.
Local markets continued to find strength yesterday. More wheat buying demand popped up in South Australian port zones. Sorghum northern markets were stronger at $405/t on the Downs, $440/t delivered Brisbane and $404/t track. Bar1 Downs was a $400-405/t market and SFW1 $385/t prompt and $395/t for March.
The USDA has revised Australian wheat and barley production up in their February WASDE report that was released this morning. Australian wheat production was revised up by 1.4Mt to 38Mt and barley was revised up 300,000t to 13.7Mt. Wheat exports were also revised up by 500,000t to 28Mt.
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