After what has been a recent downward trend, markets received a slight lift today as crude oil pushed up 3%, lending support especially to oilseeds as vegetable oil gained.
The latest USDA FAS report for India cut production forecasts for wheat. ‘Heat stress resulting from an unprecedented spike in temperatures beginning in the mid-March 2022 has had a marked impact on India’s wheat crop. Yields are 10-15 percent down, driving India’s forecasted market year (MY) 2022/23 (April-March) wheat production down from 110Mt to 99Mt’
Egypt has increased the allowed moisture content from 13.5% to 14%. With Egypt looking to increase the number of accepted nation and decreasing the stringency of specifications, the move is in order to allow a greater number of tenders, potentially opening the door to French and German wheat.
Weekly US export data was disappointing, with marketing year low sales for both wheat and corn, alongside fairly minimal US soybean sales.
Wheat: Net sales reductions of 2.3Kt for 2021/2022 were a marketing-year low, down noticeably from the previous week and from the prior 4-week average, with net sales of 246.3Ktfor 2022/2023.
Corn: Net sales of 151.6Kt for 2021/2022 were also a marketing-year low, down 63 percent from the previous week and 73 percent from the prior 4-week average, alongside net sales of just 58.3Kt for 2022/2023. Exports were more encouraging at 1.82Mt, up 34 percent from the previous week and 15 percent from the prior 4-week average.
Soybeans: Net sales of 276.8Kt for 2021/2022 were down 63 percent from the previous week and 48 percent from the prior 4-week average. Net sales of 443Kt for 2022/2023 were reported. Exports of 539.5Kt were down 44 percent from the previous week and 20 percent from the prior 4-week average.