13/10/22 Prices

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This month’s USDA WASDE was out last night. Corn and wheat didn’t find a lot of joy in the report, but soybeans and oilseed products were helped along by lower US soybean yields and production.
The move in US soybean futures spilt over into the Winnipeg canola contract which managed to close higher across both nearby and outer month contracts. Cash prices for canola out of SE Saskatchewan were also higher. A Dec lift slot climbing C$2.94 per tonne to an average price of C$833.04, according to the PDQ price reporting platform managed by the Alberta Wheat Commission.
World wheat production, according to the USDA, is now projected at 781.7mt, about 2.22mt below last month’s estimate. Carry in was increased a smidge but with minor adjustments to domestic demand and exports the net result was a slight, 1.03mt reduction in world ending stocks, now pegged at 267.54mt.
Drilling down into the data a little we see Russia and Ukraine estimates were left unchanged. The USDA calling Russian production 91mt. This is significantly lower than some private estimates for Russia which are calling the wheat crop 100mt+ there.  China was left unchanged, as was India.
The USDA stepped into line with private estimates for Argentina, production back 1.5mt to 17.5mt. This was somewhat countered by an increase in Brazilian wheat production, from 8.7mt to 9.2mt, resulting in a 200kt reduction in Brazilian imports to 6.2mt.
US wheat production was the main mover, back 3.62mt from 48.52mt to 44.9mt, the move rolling through to a 920kt reduction in closing stocks.

Algeria picked up 500kt of wheat, prices (US$380-4 CIF) suggesting Algeria may have snubbed French wheat and opted for Russian stock.

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