Thursday’s international markets gained. ASX Australian eastern wheat futures eased. Brent crude eased and the US dollar index gapped lower.
- Chicago wheat December contract up US10.75/bu to 656.25c/bu;
- Kansas wheat December contract up 18.5c/bu to 802.5c/bu;
- Minneapolis wheat December contract up 21.5c/bu to 823.25c/bu;
- MATIF wheat December 2023 up €3.75/t to €237.50/t;
- Black Sea wheat December contract up US$0.50/t to $261.25/t;
- Corn September 2023 contract up 3.5c/bu to 528.5c/bu;
- Soybeans November 2023 contract up 10.5c/bu to 1190c/bu;
- Winnipeg November canola contract up C$8.90/t to $656.30/t;
- MATIF rapeseed November 2023 up €5.25/t to €431/t;
- ASX January 2024 wheat contract down A$5/t to $382/t;
- ASX January 2024 barley contract unchanged at $328/t;
- AUD dollar gained 61 points, one percent, to US$0.6713.
International
The fallout from the Kakhovka dam explosion is starting to be realised. Apart from the devastation to houses and people, it is estimated by Ukraine’s Ag Ministry that 584 000ha of irrigated land will be unable to continue production. Part of that land is occupied by Russia, with the total production impact potentially over 3.5 million tonnes. There are also reports that up to 50 vessels loaded with grain and oilseeds are stuck in the reservoir.
It is being reported that Russian representatives of the JCC have stopped vessel inspections again and that threats have been made to attack port infrastructure if vessel traffic starts to move without participation of Russia.
Kremlin spokesman Dmitry Peskov commented that the explosion of the ammonia pipeline will become yet another complication in extension of the Black Sea Grain Initiative, as transit of ammonia was an integral part of the “half of the deal.” A new round of Russia-UN talks will reportedly take place in Geneva on 9 June.
Russian trader Agric SA has reportedly tried to withdraw its winning offer in the GASC tender of US$229/t, after failing to get approval from Russia’s Ag Ministry. It is also being reported that GASC has threatened to keep a $400,000 guarantee if Agric SA can’t fulfill the contract.
US corn crops experiencing moderate to intense drought rose by 11 percentage points from the previous week to 45pc, this is compared to 19pc last year. Soybean crops in drought also rose by 11 points, reaching 39pc.
Reuters reported Bunge Ltd was putting final touches on a deal to merge with Viterra which would create an agricultural trading giant worth more than $30 billion, including debt.
Australia
Local markets yesterday saw current crop wheat a buck or two softer while new crop was down $5-8/t. Barley trades and quotes, current and new crop, again were unchanged. Canola pulled back $10-20/t in eastern Australia.
ABS reported 355kt canola exports in April, down from 661kt exported in March. The EU was again our biggest market taking 198kt, followed by Japan with 70kt and the UAE with 55kt.
The meteorological forecast delivered notable rainfall this week including; most of WA (10-50mm), eastern SA (10-50mm) Vic (25-100mm) and southern and northwest NSW (10-100mm) and southwest QLD (10-50mm). Unfortunately, those missing out included northern NSW, southeastern and Central Qld.
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