Wheat markets softened on Friday as concerns over Putin cancelling/not renewing the Ukraine grain corridor eased with the UN and Russia continuing negotiations and a meeting between Putin and Erdogan. 7.5mmt has been shipped so far with Ukraine urging Turkey to push Russia to increase inspection speed.
WZ finished down -32.5c for the day which broke the contract out of the recent uptrend that had been intact since mid August.
FOB values ex WA at the same time were around $320/mt. APW1 values continued to firm last week with FOB now around USD370/mt for Jan/Feb.
The forecast for Australia’s East Coast continues to show more rain with 150mm expected in some areas. Flooding is already affecting NSW and VIC and with catchments already full, the additional rain will have nowhere else to go apart from adding to the current floods.
Due to drought conditions, BAGE has reduced Argentina’s wheat production to 16.5mmt, down from 22.4mmt the previous year.
Corn and soybeans ground lower overnight but recovered to around unchanged this morning, buoyed by wheat as Russia landed strikes on Ukraine infrastructure this morning.
Corn and soybeans are under harvest pressure but plenty of concern about both S&D’s remain.
South Korean millers tendered for 45k tonnes of U.S. milling wheat for Dec- Jan, while the country’s MFG bought 65k tonnes of Australian feed wheat for Feb-March at $354/tonne C&F, without issuing a tender.
Importers from the Philippines bought 165k tonnes of Australian feed wheat in an international tender closing late last week, at $345/t C&F for J-F-M.
Ukrainian President Zelensky yesterday said exports following the grain export agreement have totaled around 8 MMT, aboard 300 ships. Exports over the first 17 days of October were 2.12 MMT, down only slightly from 2.17 MMT last year. Cumulative exports since July 1 stand at 10.8 MMT, versus 16.5 MMT last year, including 3.99 MMT of wheat and 5.88 MMT corn.
The Rosario Grains Exchange on Friday estimated Argentine corn planting at its slowest pace in six seasons due to drought, with early planted corn now expected to make up only 10% of the total 2022/23 cycle, the smallest per-centage in a decade. 1.6 million hectares (3.95 mln acres) are reported as planted so far, down from 2.8 mln ha (6.9 mln ac) last year, with 8 mln ha (19.8 mln ac) total corn acres expected this season.
Mpls wheat ++8
KC wheat +8
Chic wheat +8
Matif wheat -2
Soybean oil +91