Double digit gains to finish last week
Double digit gains tested the recent downtrend although it wasn’t enough to save wheat from a downturn week which saw weekly losses of -21c for CBOT(H), -16.5c for KC(H) and -7.25c for MGEX(H).
In cash markets on Friday, South Korea’s MFG booked 50k FW at $331.90/mt CFR for Mar-May shipment as well as 50k Indian wheat at $328.50/mt CFR FO April shipment.
Japan’s MAFF booked 53k of Canadian (CWRS, Mar/Apr) and Aussie (ASWJ, June/July) wheat.
Syria issued an international tender for 200k tonnes of milling wheat, with a deadline of Feb 14, and shipment sought at some point in the next two months
Australia exported 2.2mmt in the month of December which was a 37% increase m/m although below LY record of 2.5mmt. China took the majority at 714k with Indonesia a distant second at 231k.
An error in publishing saw Bloomberg publish the title “Russia Invades Ukraine”, which was quickly removed upon realising the error. US officials advised the media that Russia already has 70% of military utilised that would be needed to invade Ukraine.
Soybeans continued to lead the way to open the week, with the March contract hitting a fresh eight month spot high and key new crop November to new contract highs
Soybean meal is favored over oil this morning but the entire complex remains on the rocket ship until further notice.
Russia’s SovEcon pegged Jan grain exports at 2.8 MMT, down from 4.2 MMT in Dec, with wheat at 2.4 MMT vs 3.5 MMT last month. Customs data showed 2021 wheat exports at 32.9 MMT, down from 38.55 MMT in 2020.
A USDA attache in Brazil Friday estimated the country’s 2021/22 corn production at 113 MMT, down from 115 MMT Jan WASDE figure, with export exports cut to 42 MMT, a million below the USDA January figure.
Mpls wheat +8
KC wheat +8
Chic wheat +7
Matif what +2
Soybean oil +30