Wheat and Oilseeds Show Gains as Corn and Soybeans Decline
In the latest market updates, canola and rapeseed prices have firmed by 2 percent, while corn has seen a slight decrease. The global wheat market has shown modest gains across major exchanges.
Market Summary
Chicago December 2024 wheat increased by US0.25c/bu to 583c/bu, while Kansas December 2024 wheat rose by 3c/bu to 599c/bu. Minneapolis December 2024 wheat saw a minor uptick of 0.5c/bu to 622.5c/bu. Over in Europe, MATIF December 2024 wheat climbed by €2.75/t to €231.75/t.
On the downside, Corn December 2024 fell by 6.5c/bu to 436.5c/bu, and Soybeans November 2024 dropped by 4.4c/bu to 1107c/bu. However, Winnipeg canola November 2024 surged by C$12/t to C$616.30/t, and MATIF rapeseed November 2024 increased by €8.50/t to €477.25/t.
Australian markets remained stable, with ASX January 2025 wheat and barley contracts unchanged at A$353/t and A$303.90/t, respectively. The Australian dollar also edged up slightly to US$0.6648.
International Highlights
A Bloomberg survey indicates that Canada’s wheat and canola areas for the 2024-25 season are expected to remain largely unchanged according to the Statistics Canada June update. Wheat area is estimated at 27.2 million acres, while canola acreage is anticipated to be around 21.5 million acres.
StatsCan reported a May crush of 920,000 tonnes of oilseeds, reflecting a 4% decrease from April but a 20% increase compared to May 2023.
In Manitoba, variable rainfall has been recorded, with significant precipitation in the Southwest, Central, and Interlake regions. Most areas have received rainfall exceeding 150% of normal since May 1. Winter cereal crops are advancing rapidly with good overall conditions.
Global logistics are facing challenges, with Singapore’s container port experiencing its worst congestion since COVID-19 due to prolonged vessel re-routing. Similar bottlenecks are occurring in other Asian and European ports.
Key Grain Purchases
Algeria’s state grains agency OAIC purchased approximately 130,000 to 150,000 tonnes of milling wheat at US$248-$250/t c&f. Jordan’s state grain buyer acquired 60,000 tonnes of milling wheat at $256.35/t c&f for August shipment and is seeking additional wheat for August/September delivery.
South Korea’s Nonghyup Feed Inc. bought 65,000 tonnes of feed wheat at $266.93/t c&f plus a $1.50/t unloading surcharge for October arrival, and 135,000 tonnes of feed maize from South America at $240/t c&f for October/November shipment.
Australian Market
Local markets in Australia have been quiet, with the ASX January 2025 wheat contract ending the day unchanged at A$353/t. New South Wales is dealing with a bird flu outbreak, which has crossed into the Australian Capital Territory and affected a third commercial egg farm now under lockdown.
The Bureau of Meteorology’s latest Climate Driver Update indicates that the El Niño–Southern Oscillation (ENSO) remains neutral, with sea surface temperatures in the central Pacific cooling since December 2023. Climate models suggest a continuation of this trend, with some predicting La Niña conditions by September.
Economic Indicators
Annual inflation in Australia rose to 4% in May, up from 3.6% in April, exceeding expectations and increasing the likelihood of an interest rate hike in August.
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