Grains are lower at midday:
July Corn – 14 ¾ cents/bu (7.14 )
July Soybeans – 2 ¾ cents/bu (16.48 ½ )
July Chi Wheat – 3 ½ cents/bu (10.73 ¾ )
Cdn $ -0.00345 (78.245 cents)
WTI Crude Oil -6.60/barrel (102.73)
Another volatile trade in grain futures on Monday, as the war in the Ukraine dominates news wires, and traders perceptions of overall supply and demand. Overnight, grain markets had gone from a higher opening to trading lower as optimism grew over the potential for negotiations between Ukrainian and Russian diplomats to bring an end to hostilities. However, talks have ended with the expectations that they will resume on Tuesday. In the meantime, heavy Russian shelling of the suburbs of Kyiv continues.
Wheat had been the weakest grain to start the day trade, as both Russia and the Ukraine had indicated that some export of grains had resumed from the region. Russia reported that 5 of their Black Sea terminals were loading wheat. However, Reuters reported this morning that “Russia may suspend grain exports until June 30th”. That news wire had an immediate impact on wheat prices, with prices moving for 30 cents/bu lower to 25 cents/bu higher in a matter of minutes. Again, price is all about perception of what MIGHT happen with wheat exports. Turkey tendered for another 270,000 tonnes of wheat this morning, which also aided the rally in global wheat futures.
This morning, the USDA confirmed the following Flash Export Sale:
- 159,000 tonnes of corn to Mexico for shipment in 2021/22
This morning, the USDA also released it’s Weekly Export Inspection Report for shipments for the week ended Thursday, March 10th. Today’s data showed that exports of corn and wheat were at the low end of trade expectations, while soybeans were in the middle of the range. Of the 45.1 million bushels of corn exported, 13.2 million went to China, while of the 28.4 million bushels of soybeans loaded, 14.3 million went to China. Corn export shipments last week represented a 5 week low, at a time when corn exports would be expected to be growing. That disappointing shipment number is another reason why corn futures are struggling today.
