Market of Wheat experienced a small gain.
The price of wheat in Chicago` increased by 4.75 cents per bushel to reach 595 cents per bushel in March 2024. Similarly, in Kansas, the price of wheat rose by 4.5 cents per bushel, reaching 618.5 cents per bushel. The price of wheat in Minneapolis rose by 2.25 cents per bushel to reach 693.25 cents per bushel in March 2024. The price of MATIF wheat for March 2024 has increased by €1 per ton to reach €211 per ton. Meanwhile, there have been no quotes for Black Sea wheat futures since August 11, 2023.
The price of corn for May 2024 decreased by 2.75 cents per bushel, reaching 450.5 cents per bushel. Additionally, soybeans for May 2024 saw an increase of 3.5 cents per bushel, reaching 1208.25 cents per bushel. The price of Winnipeg canola for May 2024 decreased by C$3.70 per metric ton, reaching C$600.50 per metric ton. Meanwhile, MATIF rapeseed for May 2024 saw an increase of €7 per metric ton, reaching €421.25 per metric ton. There has been no change in the price of ASX March 2024 wheat, which remains at A$366 per tonne. Similarly, ASX March 2024 barley also remains unchanged at A$298.50 per tonne. The AUD dollar has increased by 39 points, now standing at US$0.6522.
International
Yesterday, European Commission President Ursula von der Leyen addressed the ongoing protests in the EU and announced the Commission’s proposal to retract the plan of reducing pesticide usage by half. She emphasised that this plan has become a symbol of division and polarisation, and stressed the importance of giving a voice to the farmers in the European Parliament.
According to the latest report from Conab Brazil, as of February 3rd, 2023-24, soybean planting has been successfully completed. The harvest is currently 14% complete, which is higher than the previous year’s 9%. This progress is attributed to a recent decrease in rainfall, allowing fieldwork to advance in Mato Grosso. Overall, the later-sown crops are in relatively good condition, although the yield potential is lower compared to the previous season.
Adequate moisture is required in Rio Grande do Sul, while the harvest in Parana is progressing despite reduced rainfall. The first (full-season) maize sowing is nearly finished, with 95% completion (99% in the previous year), and the harvest is at 14% (9% in the previous year). Yields in the state of Minas Gerais have been below expectations, but dry weather has positively impacted progress in Rio Grande do Sul. As for the second (safrinha) crop plantings, they are currently 20% complete (11% in the previous year), with notable advancements in Mato Grosso due to drier conditions.
Above, the vegetable oils industry association in Brazil, has revised its soybean production forecast for 2023-24. The forecast has been reduced by 4.2 million metric tons to 156.1 million metric tons. Additionally, the association has lowered its export estimate for 2024 to 98.1 million metric tons, a decrease of 1.2 million metric tons compared to the previous year. However, domestic processing remains unchanged at 54.5 million metric tons. The output of soymeal is maintained at 41.7 million metric tons, with exports expected to reach 21.6 million metric tons.
According to a report from Reuters, Jordan’s state grains buyer recently acquired 60kt of hard milling wheat from CHS in their latest tender. The estimated price for this purchase is around US$262.95/t (c&f), and the shipment is scheduled for the second half of April.
Various offers were made, with Cargill offering $276.5, Viterra offering $279.5, Nestwise offering $268.8, Cerealcom Dolj offering $292.5, Ameropa offering $263.9, Grainflower offering $277, Buildcom offering $272, and MC Food offering $274. It is anticipated that Jordan will soon issue another tender for 120kt, with the closing date set for February 13 and shipment expected in May-June.
Japan’s Ministry of Agriculture, Forestry, and Fisheries (MAFF) is currently in the process of seeking 136,321 tonnes of milling wheat from the United States, Canada, and Australia. This request is part of a regular tender that is set to close on Thursday.
According to reports, Iran’s state feed importer, SLAL, is also actively searching for 120,000 tonnes of feed barley from various optional origins. Additionally, they are in need of 120,000 tonnes of soymeal, which can be sourced from either Brazil or Argentina. These commodities are required for shipment in March or April.
Australia
Given the weakness in offshore futures and lower global FOB values, the value of WA wheat in local markets held up well yesterday. Despite these challenges, there was late-day buying from exporters as the AUD approached its lows.
APW1 Kwinana was priced at A$410/t FIS, while H1 was at $425/t. Feed barley has seen improvement since last week and remains at $345-$350/t FIS levels for the Kwinana port zone. The best bids for canola (CAN) have returned to $660/t FIS, and there is now some demand for GM Canola at a discounted price of $10/t.
The Reserve Bank of Australia (RBA) decided to maintain the current interest rates of 4.35pc during their recent meeting. In their statement following the meeting, the board acknowledged that inflation had indeed decreased, although it remained relatively high at 4.1pc.
While the bank had anticipated a slower decline in goods price inflation, they noted that services inflation was gradually moderating. The board also expressed concerns about the uncertain future of the Chinese economy, the potential consequences of conflicts in Ukraine and the Middle East, and how these factors could impact Australia’s economy. They emphasised that the possibility of further interest rate increases could not be disregarded.