Wheat futures are higher
MWK is up 11 cents after US estimated 2023 spring wheat acres lower than expected.
US north plains weather forecast remains cold and wet.
OPEC surprised the crude oil market with a production cut announcement yesterday and WTI’s $5/bbl gain provided the grains with a clear path higher to open the week.
With the USDA March 31 reports here and gone, it’s time for the trade to concentrate on planting weather; that’s bullish for now but the cold and wet rut could be improving by mid month and we are always surprised at the speed that the farmer can put the crop in.
Argentina’s government said they would introduce the new “soy dollar” starting today, giving preferential exchange rates to farm sales and boosting exports; analysts are looking for an exchange rate of 270-300 Argentine pesos per dollar, compared to the current rate of 209 pesos.
Safras & Mercado increased ‘22/23 Brazilian corn production from 125.3 to 130.3 million tonnes, with second crop output up from 87.7 to 92.2 MMT.
Ukraine’s Ag Ministry reported the start of 2023 spring planting, with half a million hectares (1.2 mln acres) sown so far, mostly spring wheat and barley.
Private analysts Strategie Grains this morning cut their estimate for 2023 European Union rapeseed production, from 19.6 to 19.5 MMT, still up slightly from 2022. Sunflower seed output rose from 11.2 to 11.3 MMT, up 23% from 2022, with soybeans steady this month at 3.2 MMT, up 28% year over year.
Mpls wheat +11
KC wheat +13
Chic wheat +13
Matif wheat +4
Canola +14
Rapeseed +14
Soybeans +12
Soybean oil +118
Crude +439
Corn +4
CAD +32