Markets

Daily Market Wire 9 November 2023

Lachstock Consulting November 9, 2023

Firmer grain markets resulted in US winter wheat 3 percent rally. Brent crude eased another 2 percent and the Australian dollar eased half percent.

  • Chicago December wheat down US22c/bu to 592.25c/bu;
  • Kansas December wheat up 22.5c/bu to 655c/bu;
  • Minneapolis Dec wheat up 11.25c/bu to 735.5c/bu;
  • MATIF wheat Dec up €3.50/t to €235.75/t;
  • Black Sea wheat has not quoted since 11 August;
  • Corn December up 7.5c/bu to 476c/bu;
  • Soybeans May 2024 up 2c/bu to 1387c/bu;
  • Winnipeg canola May 2024 down C$0.10/t to $712.80/t;
  • MATIF rapeseed May 2024 up €1.75/t to €448.50/t;
  • ASX January 2024 wheat up A$4/t to $388/t;
  • ASX January 2024 barley unchanged at A$321/t;
  • AUD dollar down 34 points to US$0.6402.

International

Russia reportedly fired a missile at a Liberia-flagged civilian ship entering a port in the Black Sea region of Odesa on Wednesday, killing a harbour pilot and injuring four of the ship’s crew. Ukraine’s Infrastructure Minister said the vessel was chartered to transport iron ore to China.

Black Sea market analyst SovEvon noted Russian wheat exports for November could range between 3.8-4.2Mt, below the 4.3Mt exported the previous November. The decrease reflects a slowdown in export sales. It noted the decline in exports might stem from government attempts to slow down shipment at current market prices. According to market sources, the Ministry of Agriculture is trying to limit exports as long as the export price remains below the unofficial “price floor” which is currently set at US$250/t.

Algeria’s state grains agency (OAIC) reportedly purchased up to 580,000t milling wheat at an average price of $266/t c&f, for Dec/Jan shipment.

Reuters reported that Chinese importers bought around 10 cargoes of US soybeans on Tuesday (around 600kt) for shipment from the Gulf Coast and Pacific Northwest between December and March. Total purchases over the last week are estimated at 20 to 25 cargoes.

US private exporters reported sales last week of 433,000t 2023-24 marketing year soybeans to China, 270,000t corn to Mexico and 132,000t soybeans to unknown destinations. 

Japan’s MAFF seeks 60,000t feed wheat and 20,000t feed barley, for shipment by end of Jan.

Australia

Local markets held a firmer tone yesterday. The ASX eastern Australia January wheat contract closed A$3/t higher to land at $386/t, largely driven by slower harvest pace in the southern cropping zones. Scattered rain/thunderstorms rolled through yesterday bringing some heavy but patchy totals with more on the way today which will pull up most harvesting operations for now and may impact grain quality. 

Just over 1.6Mt was delivered in to the CBH network last week, with all five zones doubling their total receivals as growers across the Grainbelt made the most of warm, dry harvesting conditions. This takes total CBH receivals to over 3.3Mt for the week ending 5 November. 

Line ups data show 3.12Mt of total grains on the stem for November, including wheat at 1.6Mt, barley at an impressive 952kt, canola at 525kt and sorghum at 40kt. Port congestion improved across most ports with the max wait time less than 9 days. There are 7 vessels anchored and 5 loading at Australian grain ports.

 

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