US wheat markets turned bearish in today’s trading after the uplift post WASDE report yesterday evening. As the supply side is now evident, market thoughts shift across to demand, which at current prices, is quite subdued. Market talk - front end seems amply supplied and flour mills are holding back due to the high pricing. High wheat prices forced Egypt to cancel its latest tender yesterday and Pakistan’s state grains agency only received four offers for its latest tender to buy 90kt of wheat, lowest price being $388.83/t c&f. Argentine S&D was left unchanged and no statistical assertations about the consequences of the upcoming GM fight. Chicago Dec-21 was trading 13 cents down and Kansas Dec-21 was trading 20 cents down at time of writing.
European markets followed US markets lower with both Paris and London taking a decent step lower. Demand is also subdued on European markets due to the high prices, some market correction is required to get the demand side back on board. Black Sea Nov-21 is pushing $320 FOB with no sellers, especially Russian, willing to lower prices due to the rumours of a change in the Russian export tax calculation which would change the tax from the current running average to a FOB dictated value. Russian farmers are now getting hammered as the export taxes soar which may have a significant impact on the acreage for the 2022 crop. Matif Dec-21 settled down €6.75 on yesterday at €264.75/t and May-22 settled down €6.00 on yesterday at €257.50/t. London Nov-21 settled down £4.25 on yesterday at £204.25/t and May-22 settled down £4.50 on yesterday at £210/t.
Matif rapeseed recovered after yesterday’s falls. Nov-21 settled up €5.75 on yesterday at €647/t and May-22 settled up €4.50 on yesterday at €627.25/t. Canadian Canola Nov-21 was also trading up 6 cents at the time of writing. US corn Dec-21 was trading down 12 cents after yesterday’s announcement of higher yields and ending stocks. USDA reported 161.5kt of corn sold today to an unknown buyer. Matif corn continued to drop with Nov-21 settling down €9.00 on yesterday at €240/t and Mar-22 down €9.00 on yesterday at €230.75/t. The second day of losses for Matif corn after 15 consecutive days of gains.