International Commentary

US and Paris wheat futures closed higher, one of the few grains closing in the green last night. Chicago SRWW futures did not preform as well as the previous session, the firmer AUD almost countering the move completely. Paris milling wheat was firmer, closing +€0.75 / tonne across March / May and September contracts. A softer Chicago soybean market weighed on both Paris rapeseed futures and Winnipeg canola, the later closing with significant losses. Winnipeg canola shed C$18.40 / tonne on the nearby January contract. PDQ reports that the average cash price across SE Saskatchewan for a January lift also slipped away, shedding C$17.69 / tonne to close the day with an average ex farm bid there of C$578.48 / tonne. Palm oil was a about AUD$4.10 firmer to AUD$1720.

Cash prices for Canadian 1CWRS13.5 milling moved higher, both at the FOB level and ex farm across the interior. A January lift was up roughly C$4.51 / tonne. This was not the case for Canadian durum though. PDQ reports losses of C$5.95 / tonne for 1CWAD13 durum ex farm SE Sask.
US club white wheat values out of the Pacific Northwest were firmer, the day to day conversion showing an improvement of roughly AUD$6.59 / tonne. This may help explain some of the support for Aussie H2 wheat yesterday. US red wheat out of the PNW was generally flat to softer, the stronger AUD countering the small improvements in both HRWW and Spring wheat.

Ukraine has used the ATACMS missiles to launch attacks against Russia. These missiles are able to hit a target roughly 300km away from the launch point. Not as far as Moscow but much deeper than previous attacks. This leaves Russian supply points to the front line exposed. Aljazeera reports overnight attacks on Russian forces in the border region of Bryansk. Russian air defense was said to have intersected 5 of the 6 missiles and damaged one. Russian Foreign minister Sergey Lavrov announced that Russia will react accordingly and sees the use of the ATACMS missiles the responsibility of the USA.

Domestic Commentary

Grower selling across the NW increased yesterday with all major merchants confirming increased purchases. Public bid basis to Chicago was weaker, the local market not wanting to, or as it turned out, needing to reflect the move in US futures to attract tonnage. Bids were negotiable for higher grades, H2, APH2 while the trade remained less negotiable on APW, ASW or feed grades. Bids for export grades were more negotiable at specific sites, those with the fastest outloading capability remained the favoured sites. This did raise some interesting site price discrepancies in the west. Road only sites were penalised.

Bids into the local feed market for wheat were unchanged, $320 for ASW into Tamworth for Dec / Jan and $315 into Killara or Caroona feed lot in Jan / Feb. The local feed lot market also saw some trade short covering of feed barley for Jan / Feb delivery at $280 / tonne, while feed barley for prompt delivery remained very difficult to place, if at all.

Track canola bids were back $1.00 to $780 NTP Newcastle or $753 delivered Graincorp Werris Creek. Overnight international canola and rapeseed futures came under pressure. The fall in futures combined with the slightly firmer AUD may weigh heavily on track canola bids today.

Chickpeas were flat, a significant feat considering the pressure on international values continues, Delhi mandi values were sharply lower again overnight.