Commodity markets

            Since the start of the new “soybean dollar” program, Argentine farmers have been ramping up sales of the oilseed. Quotes for new crop (MY 2023-24) soybeans have fallen by $8/t to $484-487/t FOB Upriver (May shipments).

            The Australian grain market remains stable. Farmers are monitoring weather conditions and their impact on production prospects. This week ABARES has released a new report on production forecasts for MY 2023-24.

            Russian grain suppliers have made price concessions in order to preserve steady demand of importers. According to market participants, Egyptian GASC has contracted 480,000 t of Russian wheat under a private agreement.

            In Brazil, corn prices have been following the global trend. According to AgRural, farmers already harvested 88% of the 2022-23 safrinha crop by August 31 (98% as the same date last year) and planted 13% of the planned area with 2023-24 first crop corn.

            In the U.S., average corn prices have increased by the end of the week. Note that farmers have already started harvesting corn in some parts of the US Midwest as hot and dry weather has accelerated ripening. Still, there is uncertainty about yield potential.

            Ukrainian grain export prices have been mostly falling this week. Traders are trying to attract importers’ attention to speed up sales. Due to increased bombing of the Danube port infrastructure, grain storage in local warehouses is becoming high risk, so traders are trying to switch to direct transshipment.

            Quotes for EU wheat have been declining amid high competition with Russian suppliers. The information that Egypt contracted almost 500,000 t of Russian wheat under a private agreement rather than in a tender put pressure on prices.