2/12/21 Prices

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US grain futures were mostly firmer in overnight trade. Hard red winter wheat futures at Chicago bucked the trend and slipped a little lower. Minneapolis spring wheat was the clear winner of the wheat grades, improving 17c/bu (AUD$8.79) on the nearby. Improvements in corn and SRWW were said to be the result of bargain hunters entering the market after steep declines yesterday and good global demand.

The strength in US soybean futures rolled through to better settlement values in both Paris rapeseed and ICE canola. Paris taking back all of the previous day’s losses and some. While Winnipeg was up, it didn’t show the strength the European market did.
Reports from the ground in Southern NSW are not great. One analyst suggesting anything west of the Newell will have shoots and will vary in quality from feed to worthless. The central storage system has opened segregations for low test weight, shot and sprung canola. Devastating news for producers who were looking at both big yields and record prices.

Tunisia has tendered for 175kt if soft wheat and 92kt of durum wheat. Recent moves lower in durum values out of France may have triggered the timing of this tender. Over the last couple of weeks French FOB offers have fallen roughly US$30. With the problems in NSW somewhat cloaked by the timing of the latest ABARES report, it may take a week or two for the importers to realise that Australia may not be able to help fill the void left by poor Canadian durum, and canola, crops during Q1-2 next year.

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