Wheat tanks following China peace plan
CBOT wheat futures were sold off 4% on Friday as China’s 12-point peace plan for ending the war in Ukraine included support for the grain corridor extension. Chia buys plenty of Ukraine corn.
US wheat export sales for the week came in at 338k which was up 62% WoW however still within market expectations.
In cash markets, APW1 CFR offers in Asia were fairly flat around $360 for Apr/May. ASW1 high $330s and ASW9 high $340s. We could see more Black Sea offers in the market this week following the support given by China.
India has started harvesting their record wheat crop (estimated 112.2MMT) earlier than normal due to dry conditions and above normal temps in key wheat producing states.
Corn took the largest share of volume overnight but is holding the closest to unchanged throughout its complex this morning; it’s still matching two-plus month lows following the USDA Ag Forum.
Bullish fundamental help looks to be thin this week with export sales seasonally steady to lower, and Argentine crop failures generally thought to be priced in.
South Korean millers issued a tender for 85k tonnes of milling wheat this morning, including 50k from the U.S. & 35k from Canada for May shipment
Ukraine’s Ag Ministry reported cumulative grain exports at 31.8 MMT, down almost 27% from last year’s pace, and including 11.2 MMT of wheat, 18 MMT of corn, and around 2 MMT of barley. Grain exports so far in February stand at 4.7 MMT, down from 5.04 MMT over the same span last season.
Mpls wheat +2
KC wheat -8
Chi wheat -2
Matif wheat +0
Canola +4
Rapeseed +4
Soybeans +5
Soybean oil +49
Crude -30
Corn +0
CAD +19