Wheat market is seeing some selling after news that Algeria bought Russian wheat at discount, EU wheat basis levels dropped on the news.
There could be some additional selling in wheat given uncertainty over Ukraine policy over Russia annexing 4 Ukraine states and what would Russia do if Ukraine tries to take those states back.
USDA report day.
Russia annex of 4 Ukraine states raises questions as to will the west add Russian sanctions.
Reports that Russia may stop foreign companies from buying grain from Russian farmers for export raises questions about Russia exports especially wheat.
There is also talk that Russia may exclude foreign companies from owning port facilities.
USDA estimate of Sep 1 US wheat stocks and US 2022 wheat crop should have little impact on futures but you never know for sure.
Soybeans led a dismal session of overnight volume but wheat is leading gains this morning, though the entire complex remains range bound ahead of key USDA stocks and small grains today.
Wheat is on the top of its own range, though, with traders continually weary of escalation in Ukraine.
South Korea’s KFA bought 65k tonnes of South American corn yesterday morning at $335/tonne C&F for Jan, but then cancelled that purchase and bought 60k in a private deal at around that same price for November.
Algeria has started buying milling wheat in their international tender, reportedly in the $369-375/tonne C&F range, with volumes thus far unclear though the first purchases were seen at 150-200k tonnes. They were believed to be focused on Russian wheat yesterday, then E.U. supplies today.
FranceAgriMer reported the French corn harvest at 51% as of 9/26, around double last week’s 26% pace and well ahead of just 2% done last year.
The Buenos Aires Grains Exchange estimated Argentine corn planting at 5.8% complete as of yesterday, down 11% from last year’s pace due to the prolonged drought. The country’s wheat crop was pegged at just 11% good/ excellent, with poor/very poor ratings up three points this week to 45%.
China raised their 2023 minimum wheat purchase price by just under 2%, a similar increase as the past two years, to near $330/tonne.
Mpls wheat ++
KC wheat +10
Chic wheat +11
Matif wheat +2
Canola no markets today
Soybean oil +2