Corn was the overnight winner with Chicago futures moving 6c/bu (AUD$3.50) higher. Granted that’s not much of a win but upside is upside. The general consensus is the bargain hunters were out in force after the recent sell down. Let’s face it at sub 400c/bu corn is cheap. The nearby March contract closed at 386.5c/bu (AUD$225/t).
Last week a buyer could pick up FOB corn NOLA USA for US$183, the decline saw values slip US$5.00. This corn can be at FOB China for US$225 / tonne. Before the Chinese new year break Dalian futures closed at US$270 / tonne.

Wheat futures found no love and handed back enough to close lower than where it started prior to last week’s rally. Meanwhile in Russia Black Sea values were generally unchanged with offers around US$228 FOB for milling wheat. Last week’s range was between US$225 and US$227 for the same wheat. It will be interesting to see if Syria pick up the 200kt of Russian wheat at any better than this. The tender closes around the 17th.
The global market seems stuck between firming offer values out of the Black Sea and the reluctance of China to make good on trade promises and pick up a parcel or two of US wheat. So hence we enter Phase 2 of the agreement, actually buying stuff. The Russian situation is interesting. The USA is partly responsible for the collapse of the Rouble. The lower Rouble inflated domestic Russian wheat returns. The Russian farmer has more money, thus the Russian farmer can refrain from selling, pushing the market higher.