US farm markets were mixed, but mostly higher, for the week.
Corn prices were up 0,54% this week, setting the highest price for front month futures since the week of July 14 (when July went off at a big inverse to September).
Soybeans rose 1.4% for the week.
Soybean meal rose again, showing a rally 3.5% for the week.
Soy oil was down 0.35%.
Wheat futures were higher for the week in the KC (+ 0,56 for the week) and MPLS (0,08% wow) markets this week, while Chicago settled 1.3% lower than it was the previous Friday.
Particularly, CBOT corn futures were up 3,2 cents to $5.93/bu.
CBOT soybean futures were up 17,5 cents at $12.85/bu.
Soymeal jumped by $12,7/smt at $379,5 smt.
Soy oil gained 19 cents at $53.88
CBOT soft red winter (SRW) futures lost 10.3 cents to close at $7.75/bu.
KCBT hard red winter (HRW) futures were up 4.5 cents to end at $8.10/bu.
MGE hard red spring (HRS) futures lifted 0.8 cents to close at $10.23/bu.
This week, basis was up in the Gulf and mixed in the Pacific Northwest (PNW).
Poor rail performance, including delays and locomotive shortages, pushed up basis in the Gulf while strengthening basis in the later terms.
Traditional slowdowns in the domestic milling industry this time of year have not occurred, keeping basis steady for HRS out of the PNW, while tight HRW specifications have caused a spike in PNW basis this week.
Lower futures prices are strengthening demand for U.S. wheat, said grain traders.
Meantime, as of December 09, 2021, US corn 3YC (Gulf) was at $271/mt (up $2/mt from last week).
US soybean 2Y (Gulf) quoted at $512/mt (up $8/mt from last week)
US wheat No 2 Hard Red Winter (HRW) was valued at $369/mt (unchanged from last week).
US wheat No 2 Soft Red Winter (SRW) was at $333/mt (down $6/mt from last week).
Northern Durum offers from the Great Lakes for April/May 2022 delivery continued to be quoted at $18.10/bu ($665.00/MT).
USDA’s look at the week’s average cash corn oil prices show the localities ranged from 53 c/lb – 54.71 cents.
Those compare to 53-57 cents/lb last week.
Cash ethanol bids ranged from $2.72/gal in SD to $3.15/gal in WI.
Those compare to $2.77 – $3.23 prices last week, but are still above gasoline futures which were $2.11/gal.
As for DDGS bids, the weekly update showed NOLA was up $7-$9/MT from last week to between $234 – $245, while the FOB from PNW was down $12 to $283/MT.
USDA reported the average B100 cash biodiesel prices were $4.91/gallon for the week that ended 12/17.
That was unchanged from the week prior.
On macro markets, oil prices fell on Friday and were also down on the week.
Brent crude futures, indeed, settled down $1.50, or 2%, at $73.52 a barrel, while U.S. West Texas Intermediate (WTI) crude dropped $1.52, or 2.1%, to settle at $70.86 a barrel.
Brent was down 2.6% on the week and WTI fell 1.3%.
On the freight market, the Baltic Exchange’s dry bulk sea freight index declined on Friday, posting its biggest weekly fall since early February 2019, as demand waned across its vessel segments.
Indeed, the overall index, which factors in rates for capesize, panamax and supramax vessels, was down 119 points, or 4.8%, to its lowest level since mid-April at 2,379.
The main index lost 27.3% this week.
The capesize index shed 167 points, or 5.8%, to an over six-month low of 2,727.
It posted a 43.5% weekly decline, its worst week since May-end 2020.
Average daily earnings for capesizes, which transport 150,000-tonne cargoes such as iron ore and coal, decreased by $1,390 to $22,613.
The panamax index lost 182 points, or 6.9%, to its lowest in over three weeks at 2,444. It fell 20.3% this week.
Average daily earnings for panamaxes, which ferry 60,000-70,000 tonne coal or grain cargoes, fell $1,636 to $21,994.
The supramax index fell 45 points, or 1.8%, to 2,469, its lowest since Dec. 6.
On equities markets, on Friday the Dow Jones Industrial Average fell 1.48% to end at 35,365.44 points, while the S&P 500 lost 1.03% to 4,620.64.
The Nasdaq Composite dropped 0.07% to 15,169.68.
The small-cap Russell 2000 index rallied 1%.
For the week, the S&P 500 fell 1.9%, the Dow lost 1.7% and the Nasdaq declined 2.9%.
The U.S. Dollar Index decreased slightly from last week’s 96.23 to close at 96.19.
In Canada, as of December 13, 2021 Canadian wheat prices for FOB delivery West Coast were in Cdn$/mt:
- for the N1 class CWRS with 13.5% protein at $538.23, down $2.37 per tonne;
- for the N2 class CWRS 13.0% – $527.90, up $0.44/t;
- for the N3 CWRS – $470.13, down $0.08;
- for the N1 CWAD FOB Great Lakes – $850.09, down $18.06 per tonne .
- as durum street prices in Rosetown, continued to quote at $716.88, unchanged from past week, while export basis moved down from CAD $151.28, to C$133.21/mt of previus week.
- in St. Lawrence, as durum wheat prices fell by Cnd 2.82/mt to ~C$868.36/mt week on week.
(1USD=Cnd$1.2770).
From South America, as of December 16, 2021 – Argentina Wheat Grade 2 export price, (Up River) was at $318, down $2 from last week.
Argentina corn feed was up $2 for the week, closing at $257.
Brazilian corn feed (Paranagua) was at $274, up $3 from past week.
Argentina barley feed, was unchanged week on week, posting at $302.
Argentina soybean was up $8 at $556.
Brazilian soybean rose $6 finishing the week at $518.
In Europe, Matif March wheat futures fell by 5 euros from last week, closing at €278.5/t.
Matif corn January futures were down 4.5 euros to close the week at €242.5/t.
Matif rapeseed February futures, jumped 10.75 euros, ending the week at €729/t.
Jan-21 UK feed wheat futures fell £4.8 from past week, closing at £219.55/t.
Meantime, as of December 16, FOB prices in US dollar for French wheat with 11.5% protein and Jan. delivery, were at $ 321/mt, down $9/mt from last week.
French durum wheat, FOB Port la Nouvelle not quoted this week.
French durum wheat, feed use – basis La Pallice, quoted $521.08/mt, up $1.66 from prior week.
Spanish durum wheat Sevilla (DepSilo), was valued at $617.38/t, up $18.90 from prior week.
Italian durum wheat Bologna (Delivered to first customer), valued at $598.12/mt, up $1.90/mt from last week.
German wheat (Depsilo) with 12.5 pro closed at $337.57, up $1.07/mt from last week.
Baltic wheat (Delivery First) was valued at $280.93/mt, up $13.31/mt.
Corn delivered Bordeaux Spot – July 2021 basis was at $276.4 per tonne, down $3.64 from last week.
FOB Rhin Spot – July 2021 basis was at $283.2 per tonne, up $0.9 week on week.
Feed barley delivered Rouen – July 2021 basis was at 275.27$/t, down $5.90.
Malting barley FOB Creil Spot – July 2021 basis was at $413.47 per tonne, up $6.96/t from past week.
Rapessed FOB Moselle Spot – Flat – 2021 harvest was at 822.41$/ton, up $19.55 compared to prior week.
Standard sunseed delivered St Nazaire Spot – Flat – 2021 harvest was up $2.25 from last week at $708 per tonne.
(EUR/USD=> US$1.1328).
From the Black Sea basin, Russian wheat fell for the second consecutive week past week.
Indeed, according to IKAR, Russian wheat with 12.5% protein loading from Black Sea ports for supply in late December and first half of January was $334 a tonne free on board (FOB) at the end of last week, down $3 from the previous week.
According to SovEcon, wheat export price was down $2 to $338 a tonne.
Barley was unchanged at $304 a tonne.
Meantime, domestic 3rd class wheat, European part of Russia, excludes delivery, was valued at 15,200 roubles/t -175 rbls ($207.37) (Sovecon).
Price of sunflower seed were at 36,750 rbls/t -425 rbls from last week (Sovecon).
Sunflower oil domestic price was down -675 rbls at 86,325 rbls/t (Sovecon).
Export price for sunflower oil was at $1,375/t +$15 (Sovecon).
Export price for sunflower oil was up +$10 at $1,375/t (IKAR).
Soybeans were down 1.600 rbls at 46,400 rbls/t (Sovecon).
White sugar, Russia’s south, was at $642.7/t -$2.8 (IKAR).
($1 = 73.7575 roubles).
Meantime, Russian Agriculture Ministry has amended export duties for wheat, barley and corn for the period Dec. 22-28, 2021.
As for wheat the export duty continue to increase from 91 USD/t the prior week, to 94 USD/t for the referred period.
The indicative price moved up from 330.1 USD/t to 334.3 USD/t.
As for corn, the export duty lifted from 54.40 USD/t at 55 USD/t.
The indicative price also increased moderatly from 262.8 USD/t to 263.6.
At the same time, tariff for barley will increase to 84.8 USD/t from 78.7 USD/t prior week.
The indicative price moved up from 297.5 USD/t to 306.2 USD/t.
From Australia, indicative delivered prices in Australian dollars per tonne last week were:
Barley Downs: (Nearby) $297 down $8 – $290 down $15 (Deferred);
SFW wheat Downs: (Nearby) $322 down $6 – $310 down $18 (Deferred);
Sorghum Downs: (Nearby) $340 down $10 – $310 down $20 (Deferred);
Barley Melbourne: (Nearby) $300 down $20 – $305 down $10 (Deferred);
ASW wheat Melbourne: (Nearby) $390 down $22 – $395 down $20 (Deferred);
SFW wheat Melbourne: (Nearby) $345 down $20 – $335 down $17 (Deferred).
(AUD/USD=> US$0.7183).
On the international trade scenario, Algeria’s state grains agency OAIC purchased around 690,000 to 700,000 tonnes of optional-origin milling wheat in an international tender on Tuesday.
Estimates of purchase price were still around $372 to $373 a tonne c&f for large-size panamax vessels to $376 a tonne c&f for smaller handymax vessels.
The likely origins to be supplied could include Germany, the Baltic Sea region with possibly some from Sweden, the Black Sea including Ukraine and also Argentina “but without France”.
The wheat in Tuesday’s tender was sought for shipment in 2022 in three periods from the main supply regions including Europe: Jan. 16-31, Feb. 1-15 and Feb. 16-28.
If sourced from South America or Australia, shipment is one month earlier.
- Iranian state agency the Government Trading Corporation (GTC) is believed to have purchased around 500,000 tonnes of milling wheat in a tender that closed on Wednesday.
It was believed to have been bought in eight consignments of around or just over 60,000 tonnes for shipment to Iranian ports in the Middle East Gulf.
Prices were estimated at around 365 euros and 368 euros ($413.5 to $416.9).
Iran traditionally buys grains in euros rather than U.S. dollars.
Shipment of the wheat was sought in January and February, 2022.
Possible origins of the wheat purchased were thought to be Russia, Germany and the Baltic Sea region.
A small volume was also thought to have been purchased for Caspian Sea shipment.
The result of the land transport tender was not known by traders.
- Jordan’s state grain buyer made no purchase in an international tender for 120,000 tonnes of animal feed barley which closed on Wednesday.
A new tender with the same shipment positions is expected to be issued closing on Dec. 23, they said.
Trading houses participating on Wednesday were believed to be CHS, Cargill, Cerealcom Dolj, Viterra, Ameropa and ETG.
- Jordan wheat tender got 6 participants and MIT purchased 60k from Ameropa at 327.50 usd Cfr, to be shipped sh July 2022.
Other offers line up: CHS 331 usd, Cargill 335 usd, Anderson 338 usd, Agrochirnogi 341 usd, Cerealcom didn’t announce.
- An importer in the Philippines is believed to have bought around 50,000 tonnes of animal feed wheat in an international tender for up to 120,000 tonnes which closed on Thursday.
The price was estimated at around $335 a tonne c&f, they said. It was expected to be sourced from Australia for March 2022 shipment.
An importer group in the Philippines is believed to have bought around 110,000 tonnes of animal feed wheat in an international tender for up to 220,000 tonnes which closed on Thursday.
Two consignments each of about 55,000 tonnes were bought, with the price estimated at around $325 a tonne c&f.
The tender had sought up to four 55,000 tonne consignments optionally sourced from Australia, Europe or the Black Sea region for March 15 to May 31, 2022, shipment.
- GASC bought 67k mt of sbo and 39k mt of sfo 39k mt of sfo at $1,390 CFR, payment at sight (-35$ to July tender) for Feb 5-25 from Aston, ADM and Belluno.
30k mt sbo at $1,354.50 CFR (-113.5$) from Aston and 37k mt of sbo from local market at $1,342.10 equivalent for Feb 1-20.
- Turkey’s TMO is tendering on December 21, 2021 to buy 320.000 MT (+/- 5 % at buyer’s option) of 12.5p or 13.5p milling wheat for February shipment CFR offers only.
- The Taiwan Flour Millers’ Association has issued an international tender to purchase 110,000 tonnes of grade 1 milling wheat to be sourced from the United States.
The deadline for submission of price offers in the tender is Dec. 23.
The tender seeks a range of different wheat types in two consignments of 55,000 tonnes for shipment in 2022 from the U.S. Pacific Northwest coast.
One consignment is for shipment between Feb 1-15 and the second between Feb. 8-22.
Wheat types sought include northern spring, hard red winter and white wheat.
Watching next week market, we’re getting into holiday mode here, with a rush of last-minute business activities before the Christmas break.
We start with USDA Export Inspections on Monday morning. Wednesday we will see the EIA report on weekly ethanol production and stocks.
Thursday morning, we will see the weekly Export Sales report from USDA.
USDA will also release the quarterly Hogs & Pigs report and the monthly Cattle on Feed report.
Thursday will also mark the expiration of the January soybean complex and grain options.
Markets will be closed on Friday for Christmas Eve, and Saturday is Christmas.
Author: Sandro F. Puglisi
