US farm markets, closed out a somewhat volatile week mixed but mostly down, with one final set of down substantial moves on wheat.
In fact, corn, in spite solid gains over the past couple of days, finished the week down 1.3%, due to losses earlier in the week.
Soybeans had a strong finish to the week and gained 1,16% from Friday to Friday.
However, has been soybean meal once again the backbone of the rally, as was up 2.6% for the week.
Soybean oil, on its part, was down 2.8%.
Wheat complex, meantime, slumped on concerns that global demand could be curbed by potential coronavirus-related lockdowns.
Thus, CBOT wheat futures dropped 4.3%.
KC HRW was down 5.2%.
MPLS spring wheat was down 2.65%.
Particularly, CBOT corn March futures were down 7,8 cents to $5.84/bu.
CBOT soybean January futures gained 14,5 cents to close at $12.67/bu.
CBOT March soft red winter (SRW) futures fell 36,5 cents to $8.04/bu.
KCBT March hard red winter (HRW) futures stumbled 44,8 cent to end at $8.24/bu.
MGE March hard red spring (HRS) futures, shedded 27.8 cents to close at $10.21/bu.
Meantime, as of December 02, 2021, US corn 3YC (Gulf) was at $264/mt (down $2/mt from last week).
US soybean 2Y (Gulf) quoted at $496/mt (down $6/mt from last week)
US wheat No 2 Hard Red Winter (HRW) was valued at $382/mt (down $14/mt from last week).
US wheat No 2 Soft Red Winter (SRW) was at $348/mt (down $13/mt from last week).
On macro markets, oil declined for a sixth week in a row for the first time since November 2018, and both benchmarks remained in technically oversold territory for a sixth straight day for the first time since September 2020.
In fact, despite Brent futures rose 21 cents, or 0.3%, on Friday, to settle at $69.88 a barrel, they had a weekly decline of more than 3,9%.
At the same time, U.S. West Texas Intermediate (WTI) crude that on Friday ended 24 cents, or 0.4%, lower at $66.26, posted weekly losses for more then 2,77%.
Meantime, the Baltic Exchange’s dry bulk sea freight index advanced on Friday to post its biggest weekly rise since mid-August, propelled by gains across vessels segments.
The overall index (Baltic Dry Index – BDI) , which factors in rates for capesize, panamax and supramax vessels, added 56 points, or 1.8%, to a one-month high of 3,171.
The main index gained 14.6% this week, registering its biggest weekly rise since the week ended Aug. 20.
The capesize index gained 60 points, or 1.3%, to 4,595, a peak since Oct. 27.
It logged its highest weekly gain in about two months at 17.6%.
Average daily earnings for capesizes, which transport 150,000-tonne cargoes such as iron ore and coal, increased by $492 to $38,096.
Benchmark iron ore futures in China dropped, shedding more than 5% during the session, as production at steel mills stayed sluggish amid government curbs.
The panamax index rose 98 points, or 3.2%, to 3,128.
It posted a 19.3% weekly jump, its best since the one ended March 19.
Average daily earnings for panamaxes, which ferry 60,000-70,000 tonne coal or grain cargoes, was up $883 at $28,154.
The supramax index increased 29 points, or 1.2%, to 2,431, its highest level in a month.
On equities markets, global equities and benchmark U.S. bond yields tumbled on Friday in volatile trade after data showed U.S. job growth slowed considerably in November and the Omicron variant of the coronavirus kept investors on edge.
Thus, the S&P 500 fell 38.67 points to 4,538.43.
For the week was fell 90,32 points or 1,95%.
The Dow dropped 59.71 points to 34,580.08.
For the week the Dow lost 437,63 points or 1,25%.
The Nasdaq fell 295.85 points to 15,085.47.
For the week shedded 633,95 points or 4,33%.
MSCI’s all-country world index fell for the week 2.08% to close at 102.33 USD.
The broad STOXX Europe 600 index closed the week down 0.86% at 462,77.
The blue chip index pinballed between a gain of 161 points to a loss of 375.
The Russell 2000 gave up 89.59 points or 3,98% for the week, to close at 2,159.31.
The 10-year Treasury yield, which moves more on investors’ expectations for upcoming economic growth and inflation, was likewise unsteady.
It zig-zagged immediately after the jobs report’s release and fell to 1.36% by late afternoon, down from 1.44% Thursday evening.
The dollar index , which tracks the greenback versus a basket of six currencies, increased slightly from last week’s 96.104, to close at 96.114.
In Canada, as of November 29, N1 class CWRS with 13.5% prot. was valued at Cnd$546.16 – FOB West Coast -, up C$6.88 per tonne.
The N2 class CWRS with 13.0% quoted at C$536.78 – FOB West Coast -, up C$7.77/t w.o.w.;
The N3 class CWRS was pegged at C$484.7 – FOB West Coast -, down C$3.26;
The N1 class CWAD (Durum Wheat), was quoted at C$861.94 – FOB Great Lakes -, up C$4.98 per tonne.
Durum wheat bids in St. Lawrence rose by Cnd11.5/mt to ~C$875/mt.
Durum street prices Rosetown, continued to quote at Cnd$716.88, unchanged from past week.
While export basis rose at CAD $145.07, up C$4.98 from C$140.09/mt of previus week.
(1USD=Cnd$1.2808).
From South America, as of December 02, Argentina Wheat Grade 2 export price, (Up River) was at $318, down $1 from last week.
Argentina corn feed was up $1 for the week, closing at $253.
Brazilian corn feed (Paranagua) was at $266, down $2 from past week.
Argentina barley feed, was up $7 from last week, posting at $302.
Argentina soybean down $7 at $544.
Brazilian soybean fell $7 finishing the week at $506.
In Europe, Matif December wheat futures tumbled by 16.25 euros from last week, closing at €283/t.
March wheat futures shedded 12.75 euros from last week, closing at €290/t.
Matif corn January futures were down 9.25 euros to close the week at €245/t.
Matif rapeseed February futures, lifted 9.50 euros, ending the week at €682.75/t.
Jan-21 UK feed wheat futures fell £6.85 from past week, closing at £227.75/t.
Meantime, as of December 02, FOB prices in US dollar for French wheat with 11.5% protein and Dec. delivery, were at $ 339/mt, down $10/mt from last week.
French durum wheat for human use, FOB Port la Nouvelle continued to not quote this week.
French durum wheat, feed use – basis La Pallice, quoted $480.20/mt, down $29.66 from prior week.
Spanish durum wheat Sevilla (DepSilo), continued to not quote this week.
Italian durum wheat Bologna (Delivered to first customer), valued at $602.23/mt, down $0.64/mt from last week.
German wheat (Depsilo) with 12.5 pro closed at $349.14, up $18.56/mt from last week.
Nov. Baltic with 12.5 pro wheat (Delivery First) was at $300.55/mt, up $11.44/mt.
Corn delivered Bordeaux Spot – July 2021 basis was at $280.21 per tonne, down $15.61 from last week.
FOB Rhin Spot – July 2021 basis was at $281.34 per tonne, down $20.09 week on week.
Feed barley delivered Rouen – July 2021 basis was at 297.16$/t, down $9.87.
Malting barley FOB Creil Spot – July 2021 basis was at $406.76 per tonne, up 3.34$ from past week.
Rapessed FOB Moselle Spot – Flat – 2021 harvest was at 771.72$/ton, down $1.49 compared to prior week.
Standard sunseed delivered St Nazaire Spot – Flat – 2021 harvest was down $27.85 from last week at $700.53 per tonne.
(EUR/USD=> US$1.1299).
From the Black Sea basin, Russian wheat prices gained for the 6th consecutive week last week.
Indeed, according to IKAR, Russian wheat with 12.5% protein loading from Black Sea ports for supply in the first half of December was $340 a tonne free on board (FOB) at the end of last week, up $6 from the previous week.
According to SovEcon, wheat export price was up $6 to $343 a tonne.
Barley rose by $1 to $305 a tonne.
Meantime, domestic 3rd class wheat, European part of Russia, excludes delivery, was valued at 15,300 roubles/t +75 rbls ($204.51) (Sovecon).
Price of sunflower seed were at 35,650 rbls/t unchanged from last week (Sovecon).
Sunflower oil domestic price was up +325rbls at 88,000 rbls/t (Sovecon).
Export price for sunflower oil was at $1,410/t +$10 (Sovecon).
Export price for sunflower oil was unchanged at $1,400/t (IKAR).
Soybeans were down 575rbls at 49,000 rbls/t (Sovecon).
White sugar, Russia’s south, was at $643.4/t +$9.8 (IKAR).
($1 = 73.6581 roubles).
Meantime, Russian Agriculture Ministry has amended export duties for wheat, barley and corn for the period Dec. 08-14, 2021.
As for wheat the export duty continued to increase from 80.80 USD/t the prior week, to 84.9 USD/t for the referred period.
The indicative price moved up from 315.5 USD/t to 321.3 USD/t.
As for corn, the export duty remained unchanged at 54.30 USD/t.
The indicative price also unchanged at 262.7 USD/t.
Meanwhile, tariff for barley will increase to 75.1 USD/t from 68.30 USD/t prior week.
The indicative price moved up from 282.6 USD/t to 292.3 USD/t.
In Australia, prices for feedgrain for delivery in coming weeks have risen by $5-$40 per tonne to reflect the lateness of harvest and the shorts created as wet weather persists across much of New South Wales.
The rally has come despite a softening in offshore markets this week, with ABARES’ upward revision to estimates for the national wheat and barley crops a contributor.
In fact, indicative delivered prices in Australian dollars per tonne were last week:
Barley Downs: (Nearby) $305 up $17 – $300 up $12 Jan;
SFW wheat Downs: (Nearby) $330 up $20 – $325 up $5 Jan;
Sorghum Downs: (Nearby) $330 down $10 – $305 down $7 Mar;
Barley Melbourne: (Nearby) $335 up $15 – $325 up $5 Jan;
Wheat Melbourne: (Nearby) $410 up $2- $415 up $40 Jan.
(AUD/USD=> US$0.7093).
On the international trade scenario, Tunisia’s ODC state agency, purchased 100.000 t of soft wheat on CFR basis as following:
25.000 t from Bunge – P1 – at 382.00 USD;
25.000 t from Casillo – P2 – at 385.68 USD;
25.000 t from Casillo – P3 – at 387.68 USD;
25.000 t from Cofco – P4 – at 383.40 USD.
Tunisia’s ODC state agency, purchased 92.000 t of durum wheat on CFR basis as following:
– Viterra 25.000 t P1 at 682.56 USD;
– Viterra 17.000 t P3 at 684.09USD;
– Casillo 25.000 t P2 at 682.89 USD.
– Finagrit 25.000 t P4 at 674.00 USD.
Egypt state grain agency GASC bought 600,000 tonnes of wheat.
The shipment is for January 9-20.
Particularly, the purchase comprised 240,000 tonnes of Romanian wheat, 240,000 tonnes of Russian wheat and 120,000 tonnes of Ukrainian wheat.
Prices and the breakdown of the purchase in dollars per tonne has been:
Al Dahra sold 60,000 mt of Romanian wheat, FOB Constanta at $ 350.85 + $ 25.05 NNC (Egy.Flag) = $ 375.90 C&F;
Solaris sold 60,000 mt of Russian wheat FOB Novorossiysk at $ 351.37 + $ 26.30 NNC (Egy.Flag) = $ 377.67 C&F;
Grain Export sold 60,000 mt of Romanian wheat FOB Constanta at $ 353.50 + $ 25.05 NNC (Egy.Flag) = $ 378.55 C&F;
CHS sold 60,000 mt of Romanian wheat FOB Constanta, at $ 353.50 + $ 25.05 NNC (Egy.Flag) = $ 378.55 C&F;
ADM sold 60,000 mt of Romanian wheat FOB Constanta, at $ 353.50 + $ 25.05 NNC (Egy.Flag) = $ 378.55 C&F;
GTCS sold 60,000 mt of Russian wheat FOB Novorossiysk/KSK at $ 352.25 + $ 26.30 GTCS = $ 378.55 C&F;
ADM sold 60,000 mt of Russian wheat FOB Novorossiysk at $ 352.37 + $ 26.30 NNC (Egy.Flag) = $ 378.67 C&F;
Aston sold 60,000 mt of Russian wheat FOB Novorossiysk at $ 352.37 + $ 26.30 NNC (Egy.Flag) = $ 378.67 C&F;
LDC sold 2×60,000 mt of Ukrainian wheat FOB Odessa at $ 352.00 + $ 27.10 NNC (Egy.Flag) = $ 379.10 C&F.
The average FOB price rose from $ 346.97 of last tender, to $ 352.37 in today’s, up $ 5.4 per tonne.
Meanwhile, the C&F average price rose from $ 371.97 of the previous tender to $ 378.33 in today’s race, up $ 6.36 per tonne.
MIT Jordan bought for shipment in June 2022, 60K milling wheat at $351.5 usd CFR from AMEROPA.
Jordan Barley Tender got 6 participant and MIT purchased 60k from Ameropa at 307 $/MT for shipment in June 2022.
Other offers were: CHS at 329.18 $, Cargill at 323.65 $, Vittera at 345 $ and at 342 $, Bunge at 347 $, ETG at 338 $.
Watching next week market, the first full week of December starts with the normal USDA Export Inspections on Monday morning.
Wednesday we will see the EIA report on weekly ethanol production and stocks.
That is also the last trading day for December cotton futures.
USDA will release their monthly Crop Production and WASDE Supply/Demand estimates on Thursday, the 9th.
Thursday morning we will also see the weekly Export Sales report from USDA.
Author: Sandro F. Puglisi
