US futures were lower across the board, wheat, all grades, corn and soybeans all shedding value as the world talks more of recession in 2022-23. Awesome, so recession with inflation and increasing interest rates. That’s a pretty nifty trick by the FEDs, killing everything all at once. I mean we’ve seen some serious levels of ineptitude over the years but the last 36 months is really setting the benchmark for incompetence in most fields of government intervention at a whole new level.

Saudi Arabia announced a tender for 535kt of 12.5% milling wheat for arrival between 10th of Nov and Feb 25th. We should see the results over the weekend. This tender comes as interest in Russian and Ukraine wheat increases. The sudden interest has seen Black Sea values for Russian wheat actually increase this week to roughly US$232. Not a bad effort considering the huge crop they have almost finished harvesting. The grade, 12.5% milling wheat, is probably the key here. There continues to be talk of a significant portion of the later harvested wheat in Russia not making milling grade.

The USDA released their weekly export sales data for the last few weeks overnight. The report came out after a failure of the new system became evident back in August. Looking at the data, wheat, corn and soybean sales volume all fell within pre report estimates thus failed to influence the futures markets one way of the other. The soybean number, if anything, is probably a little better than expected given the strong competition from the Argentine farmers and the “soydollar”.
Still no rain across south-central China and temperatures there are still unseasonably high.