Commodity markets

            Weak demand for US soybeans and improved weather in South America put pressure on relevant export quotes.

            Activity is picking up in the Australian grain market. Although producer sales are minimal, the export market continues to function. Activity at ports is increasing. January grain shipments are expected to total 3.83 million t, including 2.36 million t of wheat and 965,000 t of barley.

            The Russian grain market has been generally calm, with export quotes showing minor changes. Players note that export shipments may slow down due to worsening weather (although they have just started to recover).

            Estimates of Brazilian corn production in MY 2023-24 continue to decline, but this does not support the quotes. Farmers are harvesting first crop corn of the season 2023-24, with 4% of the areas processed (1% last year).

            US corn prices have declined as weather conditions in South America improved production prospects. Low demand for wheat in the U.S. along with rumors of China canceling shipments of some SRW resulted in lower wheat prices.

            Export prices for EU grains have increased following the exchange prices, although the quotes showed some decline earlier in the week given ambiguous prospects for wheat exports in the current season and competition with Black Sea traders.

            Export quotes for Ukrainian grains have grown slightly amid restrained sales by farmers and increasing importers’ demand. Additional support came from tenders for the purchase of wheat held in Egypt and Lebanon.