The global grain market remains volatile. Saudi Arabia is again buying large quantities of wheat, while US exports are continuing at a brisk pace. In Brazil, soybean sowing is progressing well. Read more about wheat prices, export trends, and weather conditions in the main growing regions.
The December wheat contract on the Matif closed unchanged yesterday at €187,75 per tonne. On the CBoT, wheat closed 2 cents lower at $5.12¾ per bushel. Corn showed a slight gain, closing 2 cents higher at $4.21¾ per bushel. Soybeans moved mostly sideways on the Chicago exchange during the last trading session, closing a quarter-cent lower at $10.17¾ per bushel.
Saudi Arabia has reportedly purchased 455.000 tons of wheat for delivery in December and January. The average price for the wheat in this tender, according to some sources, is $263 per tonne C&F (freight forward). The majority of the tender is said to be filled with wheat from Russia. The remaining wheat purchased by Saudi Arabia is said to come from other Black Sea countries.
The Ikar price for Russian wheat rose by $2 this week to $232 per tonne. However, according to several analysts, Russian wheat exports remain somewhat difficult. Due to a relatively low wheat price and a relatively large harvest, there is little to no incentive for global buyers to bring forward purchases. This problem affects not only Russia, but also Ukraine and the EU.
The US is successful in exporting wheat
In the US, however, wheat exports are ahead of schedule. In the week ending October 2nd, the US exported 500.000 tons of wheat. A total of 10,2 million tons of wheat were exported by the US this season. That's 18% more than the same period last year. Of the total exports forecast by the USDA for the entire season, 42% were actually exported. The five-year average for this week is that 38% of the expected seasonal exports were exported this week. US exporters are being helped by the relatively low dollar, which makes US wheat relatively attractively priced for buyers on the global market.
Although we did have some US export figures, there's no USDA Crop Progress report this week. Due to the government shutdown (the closure of various public services due to the need to raise the debt ceiling), harvest progress and winter wheat sowing progress in the US are temporarily being tracked. After some rain in the Cornbelt in recent days, the weather this week is favorable for the US soybean and corn harvest, according to various local sources. The somewhat warmer and drier than average weather is returning, particularly in the more eastern Cornbelt. According to weather models, this will continue for at least another two weeks.
The hallway in it
We do have new figures from Brazil on the progress of soybean sowing there. According to AgRural and Patria Agronegocios, 9% of the planned soybean acreage is in the ground. This means Brazilian growers are making good progress. Only once before has more soy been sown this week. In the largest agricultural province, Mato Grosso, 15% of the planned soybean acreage has been sown. In some southern and central regions, 40% of the soybean is already in the ground. If the rain forecast for next week actually falls, Brazilian soybean growers will not only have been able to sow early, but the crop will also grow quickly, according to AgRural. This is especially important for the second crop of corn that is sown after the soybeans. Being able to sow the corn on time has a significant impact on the expected yield.