International grain futures were broadly flat to lower. Corn and soybeans at Chicago managed to stay in the green while wheat in the US, across all three futures contracts, was lower, handing back yesterday’s gains. The Winnipeg canola market managed to slip lower, against the flow in beans.
Paris rapeseed futures were higher by E4.50 on the nearby. With the nearby Paris contract about to roll off the board there maybe some other factors at play pushing that market against the overall trend at Winnipeg / Chicago. In AUD terms the Paris move is equal to +AUD$7.27, taking daily moves in cross currency rates into account. The move at Winnipeg is equivalent to about -AUD$3.42.
Wheat was the biggest disappointment, the SRWW contract at Chicago shedding AUD$5.69 per tonne, there’s another AUD$0.75c worth of potential downside to put on top of that thanks to a slightly stronger AUD. The wheat market struggled overcome technical selling from the open of the night session. The prospect of another good crop in 2024, ample world stocks, and slower than desired world demand, all weighing on international wheat markets.
Both the EU and Russia will basically need to export wheat at near record pace to meet current export projections.

In other news Egypt, Ethiopia, Iran, Saudi Arabia and the UAE have confirmed their intention to join the BRICS group. BRICS, originally consisting of Brazil, Russia, India, China and later S.Africa, was set up as a trade group to develop bilateral agreements between the members. As the group developed so did interest in expansion of the member base. Argentina was also asked to join at the same time as the new members mentioned above where but failed to appear on the list yesterday. Confirming Javier Milei has withdrawn from membership talks as of late December. There continues to be speculation that the group will develop trade internally, excluding many non member states, and will develop their own currency to do so, if not adopting a members current currency.