Wheat higher again on Black Sea corridor
Wheat markets continued their surge higher on Friday as the corridor remained closed to inbound and outbound vessels for Ukraine origin grains.
Forecasts for EU/BS look to remain dry after an already dry 2 weeks. French wheat crop conditions were decreased by 2% to 91% G/E.
The heavy rains in China being reported over the past week could knock 20MMT off their production which was forecast by the USDA at 140MMT.
VIC, parts of Southern NSW and WA look set for some decent rains over the next couple of days with 50-100mm forecast.
Corn dominated overnight trade volume once again and is building a higher high and low on top of Friday’s rally.
The trade still has yet to see any real change in a hot and dry U.S. / Canadian weather pattern.
The same persistence remains in the Black Sea arguments, an impasse is sounding likely though
Saudi Arabia bought 624k tonnes of wheat for Sept-Oct shipment, at $262/ tonne C&F, more than the 480k tonnes originally sought.
Ukraine’s Ag Minister on Friday said the country has a “plan B” if Russia continues to block the grain export deal, excluding Russia and guaranteeing shipment via the corridor with funds built up via government coffers. Mean while, Russia’s foreign ministry says that inspections under the deal have resumed, but they also see “no prospects” for another renewal in mid July. Everyone has a different opinion
Mexican officials on Friday said they would counter U.S. arguments over GMO trade measures, but they’re committed to “constructive dialogue” over U.S. concerns and plan to reach an agreement without a trade panel.
Ukraine’s Ag Ministry on Friday said the country’s 2023 spring grain planting campaign is “almost complete” at 5.5 million hectares (13.6 mln acres), down from 5.9 mln ha (14.6 mln ac) in 2022. Grain production was left unchanged at 44.5 MMT despite reduced plantings, versus 53 MMT in 2022. They noted that most of the country’s winter grain crop is in good condition, but that yields could fall by as much as 20% if hot and dry weather continues.
Mpls wheat +7
KC wheat +7
Chic wheat +2
Matif wheat +2
Soybean oil -7