Canadian cash bids for both canola and durum were higher overnight. Canola the clear winner, SE Sask values for a Dec lift increased on average by CAD$6.20/t. Durum out of SE Saskatchewan has seen recent improvements for the 1CWAD13 grade, their top grade. Those moves continued last night. Harvest rain has limited the quantity of premium durum that will be available from Canada this year.
Canadian high protein spring wheat followed the lead from the US markets and trended lower. Up country values shed roughly CAD$2.21/t for a Dec lift. At the port both Canadian and US spring wheat values drifted lower. The day to day conversion comparison for Canadian spring wheat fell roughly AUD$1.04/t, while the US DNS product fell about AUD$1.76/t on yesterdays conversion. Hard red winter wheat and white wheat out of the US PNW fell by less than a dollar compared to yesterday. International milling wheat values were generally either side of unchanged.

India is increasing their purchases of palm oil. Delays in loading sunflower oil from Black Sea ports is pushing India into the market to find a suitable replacement. Overnight palm oil futures were up AUD$12.29/t, continuing the recent recovery after gapping higher on Wednesday. Palm oil appears to have found support after hitting a 5 month low earlier this month.
Fall out from the Black Sea war is spilling across all grains, wheat, barley, sunflower, corn, as much as it is the energy market. The biggest issue is that we are not seeing prices move higher due to supply short fall, but from access. The stock that can’t be shipped from Baltic ports or Romania isn’t disappearing, it’s being added to ending stocks. The result of a resolution to the war will be a flood of grain onto the Black Sea market once port infrastructure can handle it. Unless this war continues for much longer, and Russia and Ukraine reduce 2027 grain and oilseeds supply to account for the build up in opening stocks, the odds of a price shock remain high. This is currently being countered by the fact neither side look to be close to a resolution, and input costs are limiting sowing.