Grain quotes on the Matif and the CBOt are continuing their upward trend. The acreage expectations for Ukraine are an important factor in this regard. In the physical market, grain importing countries are looking for alternative suppliers for Russia and Ukraine. A new player appears in the firmament.
The wheat price on the Matif closed yesterday at €379 per tonne, an increase of €2,25 compared to Monday. The contracts for the new harvest are also increasing by a few euros. The September contract closed at €342,50 per tonne and will end at €320,50 per tonne for May 2023. The current prices are up more than 1% for both the old and new harvest at the time of writing this article. The American CBoT listing shows a similar price movement and is therefore in line with the Matif.
The rise of rapeseed quotations on the Matif continues unabated. Yesterday the Matif closed just below €1.000 at €994,50 per tonne. This morning that barrier was broken and the stock market opened at €1.000 per tonne. This rose even further to €1.021,75 per tonne. This has now fallen slightly and the current rate at the time of writing is €1.009,75 per tonne. Since the invasion of Ukraine, rapeseed has risen in price by approximately 36%.
Lebanon, which normally imports a significant portion of its grain from the Black Sea region, announced today that it has opened a 50.000-ton tender for wheat from India. The tender will be opened as soon as the Lebanese central bank grants credit for the purchase, Minister Amin Salam told Reuters. “India is the first country to announce how much wheat and with what specifications they can supply,” says Salam. "And a quote will be received tomorrow." The US and Kazakhstan have yet to respond to Lebanon's request.
Customs detains soy
The export of soy from Brazil is not going according to the wishes of grain traders. Tax officials at the port of São Paulo are campaigning for higher wages. There is no complete strike but only the essential work is being done. The tax/customs authorities therefore hardly issue any phytosanitary certificates. Without these certificates, the soy cannot be exported. The action comes at a very unfortunate time for soy exporters. The soy harvest has already largely been completed and Brazilian soy exports peak during this period. Loaded ships cannot now leave the port and this is a major drain on liquidity for the trading companies. “A ship carrying 65.000 tons of soy now represents a value of approximately $42 million,” says a trader at Successful Farming.