- International wheat markets have seen a brisk day today with Algeria reported to have purchased 500,000 mt of optional origin milling grade wheat for delivery in Apr/May ’14. It is thought the origin will likely to be French. Iraq’s state grain board has also purchased hard wheat, 250,000 mt from Australia and 100,000 mt from Canada for shipment in Apr/May ’14.
- Yesterdays selloff in soybeans and soybean meal, triggered by beneficial rains in needy southern and central Argentina and the promise of more in coming days, saw some follow through today although two sided trade was the order of the day. It is believed that these rains will be of great benefit to the development of the soybean crop although the sunflower crop is probably too far advanced to take advantage of the recent moisture.
- It feels as if US soybean exports to China will decline by some magnitude in coming weeks as improved export availability in S America and a slowdown in overall shipments to China take effect. China is in a more comfortable stock position than was the case a year ago and high prices nearby together with reports of larger than expected yields, particularly in Brazil but also Paraguay, may well prompt Chinese buyers to either delay or cancel shipments of US soybeans.
- Weather conditions in Russia have turned sharply colder with Saratov, a winter wheat region in Volga, moving from 0℃ (32℉) to –18℃ (0℉) in the space of less than a week. Fortunately a blanket of insulating snow has fallen ahead of the freeze and winterkill is not viewed as a serious threat right now. In the central district, northeast of Ukraine there could be some damage from –18℃ (0℉) temperatures which lasted several nights with poor snow cover. Four key wheat districts are reputed to be affected, Kursk, Belgorod, Voronezh and Tambov. Previously the threat of winterkill was deemed high due to planting delays and fears that the crop would not reach dormancy in a timely fashion, however unusually warm conditions have alleviated much of the threat . Concern has moved to dry conditions experienced in the southern region of Russia where much needed precipitation is required to restock parched soils in the 4 main wheat districts Krasnodar, Stavropol, Rostov and Volgograd that together produce 60% of wheat.