Monthly Archives: March 2022

Wheat limit up again on news of Russian artillery striking a nuclear plant in Ukraine, no radiation leaks reported and reported to be under control. YIKES!
Groundhog day for wheat futures which continue to lock limit up for their 3rd consecutive day meaning expanding limits to remain in place at 75c for CBOT and KC. The March CBOT contract on small volume of 374 lots rallied by $2.30/bu to a near record high of $12.89/bu not seen since 2008.
Wheat buyers in MENA regions have been forced to look for alternative wheat suppliers following the Force Majeure declarations on Black Sea wheat.
Baltic origins as well as Aussie wheat have seen a flurry of enquiries and pushed APW FOB prices up to $410/mt for May and June shipments. Traders are of the opinion the stem will fill up with sales quickly through to August and some will miss out (first in best dressed). German 12.5% FOB wheat was reportedly traded at €34/mt over Matif May futures for spot shipment which equates to around USD442/mt. French 11.5 MW was reportedly traded at €19/mt over May futures which is USD426/mt.

Mpls wheat +60 September forward contracts off limit now at +57/+53/+45
KC wheat +75 Limit up all the way out to March 23
Chic wheat +75 Limit up to September 22
Matif wheat +22
Canola -1
Rapeseed +12
Soybeans +13
Soybean oil -46
Crude +381
Corn +30
CAD -56

Wheat hits 14 year high
Wheat futures soared to 14 year highs with the CBOT May contract settling at $10.59/bu. Of note, in the space of 7 sessions, the K/Z spread has blown out from 0 to $1.67/bu indicating the world needs US wheat stocks (or other alternatives) to cover the loss of exports out of Ukraine and Russia.
Discussions over the duration of the current war in Ukraine is starting to dominate discussions now with how and when the war will be resolved. Further sanctions banning Russian planes from airspace and ships from waters outside of Russia, and also large MNC pulling out or suspending operations in Russia in protest of the invasion in to Ukraine.
In cash markets, the Turkish TMO booked 370k of milling wheat for 10 Mar – 8 Apr shipment. Offers were mostly EXW with prices for 12.5% ranging $410.8/mt-$442.8/mt and for 13.5% ranging from $408.9/mt to $464.9/mt. There was 1 lonely CNF offer from Olam at $517/mt.
Aussie FOB prices continued to surge on increased interest with 1 reported trade at $390/mt for APW for June load.
CBOT May contract has traded through $11/bu on the open

Mpls wheat +2
KC wheat +41
Chic wheat +67
Matif wheat +9
Canola +11
Rapeseed -1
Soybeans +18
Soybean oil +9
Crude -31
Corn +5
CAD +6