-Wheat pulls back overnight on optimism of Paris talks
-Argentine forecast wetter
-Asian feed buyers active overnight
-Logistics impacting U.S. grain shipments to Canada
The wheat market was lower overnight as Russian, Ukrainian, French and German officials meet in Paris today as a potential
restart of talks to de-escalate the rising tensions over ideas of a Russian invasion, while continued strength in Malaysian palm oil futures pulled soybean oil higher and, accordingly, soybeans, as well, overnight.
The Argentine forecast is wetter in the 6-10 day and 11-15 day outlook periods this morning, while good rains remain in the
same forecast periods for southern Brazil, as well.
Parts of western Kansas and eastern Colorado saw much-needed 2-20 inch snowfall amounts over the last 24 hours, although total coverage of Kansas was only about 30%.
Three Philippines importer groups tendered for an unspecified amount of feed wheat for April-October shipment periods. Another group bought 35k tonnes of Australian feed wheat at $356-$359/tonne c&f for April shipment.
South Korean feed buyers were busy overnight with one buying 69k tonnes of optional-origin corn at $332.70/tonne c&f for April shipment, another buying 193 tonnes of corn at $336.77-$338.95/tonne c&f for Feb-Mar shipment periods and, finally, 55k tonnes of optional-origin feed wheat was bought at $339.49/tonne for April 25 arrival.
China said they will promote intercropping of soybeans with corn on more than 1 million hectares (2.5 million acres) of area in 2022/23 as a way to increase soybean production, while not impacting corn production. Last year, China planted 8.4 million
hectares (20.8 mil acres) of soybeans.
The notable needed increase in Canada’s imports corn from the U.S. as a result of last summer’s historic drought has faced
considerable shipping/logistics issues with weather-related rail problems and COVID-related boarder crossing issues for truckers resulting in widespread feed shortages among feedlots this winter. Some Alberta operations have said feed supplies are down to 5 days of requirements vs the normal 14-30 day buffer of supplies on hand. Canada has bought 3.2 MMT of U.S. corn so far this year vs just 450k tonnes at this time a year ago.