Mixed close across global futures
Wheat futures traded either side on Tuesday with no further Russian attacks on Ukraine grain ports and storage. No attacks, no bull markets, it is all about news headlines.
At the close Matif had slid on the front months while CBOT marginally gained across the board.
A Romanian merchant vessel is confirmed to have sustained some minor damage in the recent attacks on Danube ports. While no action is likely to be taken, it could come up during today’s NATO/Ukraine council meeting regarding the Black Sea corridor. Amid growing criticism, Putin defended scrapping the grain deal saying it “has lost its meaning”, however, a report uncovered yesterday showed Russia had always intended to slow the passage of ships before finally pulling out entirely.
Bulg/Rom 11.5 CFR SEA would be offered around USD310/mt for Aug/Sep shipment.
ASW1/ASW9 around $315-320 and APW1 $325/mt although it’s a market not clearly defined among so much uncertainty.
Wheat is taking profits this morning after multi-month highs yesterday, with action slowing a bit in the Black Sea region after Russia’s initial strike on the Danube on Monday.
Bangladesh issued an international tender for 50k tonnes of milling wheat, for Aug-Sept shipment, closing on August 13; they still have a tender out for the same amount closing on August 1.
Day one of the Wheat Quality Council’s Spring Tour found average hard red spring wheat yields in southern and east central North Dakota at 48.1 bushels per acre, down from 48.9 bpa last year but above the 40.2 bpa five-year avg.
The European Union yesterday said they’d be willing to export “almost all” of Ukraine’s grains via “solidarity lanes”, as well as help cover costs; that would consist of road and rail connections through Romania, Poland, and Hungary. 60% of Ukrainian grain exports went through those routes during the Black Sea deal, with the other 40% via water. The E.U. Ag Commissioner said they could handle the entire four million tonnes per month shipped during the agreement. Lithuanian officials asked the E.U. to develop a route for UKR grains through Baltic ports, five of which in multiple states can handle a combined export capacity of up to 25 MMT.
Mpls wheat -13
KC wheat -22
Chic wheat -20
Matif wheat -4
Soybean oil -74