The US grain futures market generally trended lower for wheat and corn while soybeans were just a touch higher. The big news in US corn is the announcement that Mexico, one of the USA’s major corn consumers, is considering a ban on GM corn from 2024. The US has suggested the ban would be in violation of the USMCA trade pact and legal action to recoup losses would follow if the ban is implemented.
Brazil remains on track to produce a record corn crop in 2022-23 with a year on year increase of 8.6% currently predicted. Argentina may not be so lucky though with dry weather still hampering sowing of the corn crop in the central and northern districts.
US soybean futures remain under pressure from the slowing demand from China. It’s getting harder to feed people that are being locked up in their apartment buildings. I bet many are missing their simple farm village life now. Prospects of a large Brazilian soybean crop and talk of trade agreements in place between China and Brazil are also tempering the US soybean market.
The US is also having its own demand issues with the largest ever bird flu outbreak already claiming around 50.54 million birds. The outbreak is bigger than the 2015 outbreak which claimed over 50m birds. Egg and turkey prices have increased as a result. Transmission through wild birds like ducks has been the major spreader this year.
Wheat prices were lower at Chicago and for the outer month at Paris. Nearby Paris milling wheat found some support, but both the March and May contracts were back E2.50 by the close. In Canada milling wheat prices across SE Saskatchewan were mainly firmer according to PDQ. Durum values were back a smidge, more to do with currency that grain price. Cash canola also saw some good gain, putting on over C$20 across all nearby months. The spread between durum grades in SE Sask remains low 1CWAD13 to 2CWAD11 is discounted by just C$11.02.