Export and world trade are keeping things busy on the grain market. North Africa is the market for wheat. Poland and Ukraine appear to be getting closer again regarding grain imports. In the US, the soy market draws hope from the EU's green goals.
The December wheat contract closed yesterday at €240,25 per tonne. That is unchanged compared to Monday's closing price. The price also remained unchanged at $5.89 per bushel on the Chicago stock exchange. It is rare that wheat prices remain the same on both exchanges. Corn took a step back last trading session, closing 0,3% lower at $4.79¾ per bushel. Soy was on the rise, gaining 0,4% to $13.02¾ per bushel.
According to traders, there is a lot of deliberation for players in the wheat market. Export is the most discussed topic at the moment. Several sources report that Tunisia has secured 100.000 tons of wheat in a tender for approximately $277 per ton C&F (free). The country of origin is not entirely clear. Wheat exports from the EU this season until September 24 stand at 6,88 million tonnes. That is no less than 27% less than in the same period last year.
Egypt has several irons in the fire when it comes to grain deliveries. It was previously announced that Egypt is investigating the possibilities of importing wheat from Kazakhstan. Yesterday it was announced that Egypt is also in discussions with Russia about 1 million tons of wheat. This would involve a deal between both countries and not via market parties.
Baltic Sea alternative to Black Sea
Talks between Poland and Ukraine on grain imports are on track, Polish Minister of Agriculture Robert Telus said during a press conference. "I'm glad that we're talking about the future, that we're building mechanisms for the future and that we're calming some emotions that haven't been good for us. We're probably moving in the right direction." A firm demand from Poland is that Ukraine withdraws its complaint from the WTO. Furthermore, Telus announced that it is in discussions with Lithuania about organizing the transit of Ukrainian grain to the Baltic Sea ports.
The Ukrainian attempt to restart exports across the Black Sea is not yet going smoothly. The first of the three ships en route to Chornomorsk has been loaded, but has not yet left for the return journey and remains stuck near the port. The other ships are still waiting for their cargo.
Soy from the US in the spotlight
In the US, the corn and soy harvest is progressing only moderately. Due to the rain last weekend, the combines are at a standstill. Local sources expect that the harvest can resume in the country today or tomorrow cornbelt. The deteriorating condition of soy in the US in the Crop Progress report provides support to the market according to analysts. Another bright spot for American soy growers comes from the EU. Because of the rules surrounding deforestation-free soy, European buyers may buy more soy in the US.
In Brazil itself they are not so concerned with what the EU does or does not want, it seems, but much more with the weather reports. It is dry in the central part of Brazil and, according to weather forecasters, this will not change next week. Growers in Brazil are sowing soy. However, due to the drought, the start of the crop is not ideal.