Zhengzhou in central Henan province China has seen up to 617mm of rain over three days. It’s being labelled a 1 – 1000 year rainfall event and has created serious flooding.
The region is a densely populated agricultural region with the Yellow River threading through the northern quarter of the province and passing through Zhengzhou. Rice and wheat are the main crops grown in the area but there is also a large percentage of the Chinese cotton, tobacco, sorghum and millet crops produced there too. Wheat is usually harvested in May / June. Chinese sorghum acres were lower due to record high corn prices at planting. Sorghum is harvested in July / August so this rain has come at the worst possible time for sorghum.
Dalian corn futures are flat at Y2526 /t (AUD$530.78/t).

In N.America spring wheat futures saw some profit taking. Minneapolis futures and cash prices across SE Saskatchewan were both lower, the later shedding C$10.68 / tonne on average. It should be noted that cash bids for durum were not affected by profit taking in the spring wheat market and actually put on another C$10.40 per tonne for a Dec21 lift, ending the day with an average cash price of C$403.05 / t according to PDQ. Using a farm to FOB basis of C$90, a little lower than their winter basis, we come up with a rough equivalent price at an Aussie port of $480 per tonne for DR1 using the Mediterranean as a consumer base. Local basis has been factoring in about $20 of execution risk of late. So still some scope for upside in durum today. Still in Canada, cash bids for canola followed futures lower, back C$23 in Dec21.