Wheat markets were led lower by the reversal in Matif wheat on the news that UK would send warships to defend Ukraine grain shipments; and lower con on the China / Brazil new protocols
Corn and wheat volume picked up overnight with the former touching a six week spot low
Global food security needs remain but most importers are looking for alternatives at these high price levels.
China has opened up BRZ corn exports and Russia is willing to open up “humanitarian corridors” for food shipments from Ukraine through the Black Sea.
Current U.S. rains may aid wheat a bit but slow down corn and soybean planting.
Pakistan is seeking 500k tonnes of international wheat, with their lowest offer coming in at $515.49 per tonne cost plus freight.
Jordan made no purchase in their tender for 120k tonnes of international milling wheat closing yesterday, with only one trading house participating; a new tender is expected to be set for next Thursday, June 2.
China has finally signed a phytosanitary agreement with Brazil to import the country’s corn, following record Chinese corn imports last year and in the face of reduced supplies from Ukraine China is also rumored to have bought anywhere from 250-400k tonnes of corn from Brazil for Sept/Oct shipment. That jives with the schedule set forth by exporting association Anec, who said that it would take around three months for Brazil to revise its requirements and allow shipments to begin.
Brazilian exporting agency Anec estimated May soybean exports at 11.278 MMT, down from 11.483 MMT previously, with corn pegged at 1.243 MMT, down from 1.264 MMT last week. Soybean Meal exports were down this week as well, from 2.009 to 1.903 MMT, with wheat up a bit from 105k to 109k tonnes.
APK-Inform reported that Ukraine exported 28k tonnes of grain by truck during the first three weeks of May, mostly via border crossings with Poland. That and rail exports continue to increase but are falling well short of making up the nearly 6 MMT of grain exports per month from Ukraine pre-war.
Mpls wheat -29
KC wheat -34
Chic wheat -30
Matif wheat -5
Soybean oil -95