Ag markets retreat on escalating PRC covid protests with crude oil eroding to lowest level since Dec 2021.
Argentina announced a new soya peso deal that farmers could sell soybean at 230 peso/dollar versus current rate of 165. This is expected to increase farmer selling and soybean crush and exports. This will compete with US Jan-Feb exports.
US wheat price premium to other origins narrowed last week but Russia prices still lowest to buyers.
Russia continues to bomb key Ukraine cities and power grids.
Egypt’s state buyer bought 175,000 tons of wheat in private negotiations late last week, bringing its total purchases of the grain for the 2022-23 season so far to at least 3.72 million tons.
Exports of Ukraine’s grain will not reach 3 MMT in November as Russia tries to limit ship inspections at ports. That would be down from 4.2 MMT of grain that left Ukrainian ports in October. Since July 1, Ukrainian grain exports totaled 17.2 MMT, down 31.9% from the same period last year, including 9.1 MMT of corn, 6.6 MMT of wheat and 1.4 MMT of barley.
Russia will export 4.9 MMT of grain in November, up 200,000 MT from October, including 4.4 MMT of wheat. Grain exports would be up from 3.958 MMT in November 2021. After a slow start to 2022-23, Russian grain exports have gradually built after record production
Canola prices tried to stabilize Friday in early dealings following Thursday’s losses that came while CME markets were closed.
The lack of fresh export demand despite hefty losses over the past 2 weeks has allowed prices to work lower, while fund selling remained active both on a liquidation and new sales basis.
March canola has lost nearly $100 a tonne from the November 4 high and with it id believed to have triggered a little panic farmer selling has surfaced this week, especially with the 2022 crop roughly one third bigger than last year and the delivery pace lagging last year
Deliveries 6.075 MMT vs 6.142 LY
Exports 2.376 MMT vs 2.142 LY
Crush 2.519 MMT vs 2.335 LY
Del to crushers 2.217 MMT vs 1.872 LY
Mpls wheat +4
KC wheat -3
Chic wheat -9
Matif wheat -4
Canola -3
Rapeseed -11
Soybeans -4
Soybean oil -84
Crude -209
Corn -5
CAD -44