International

Egypt’s GASC reportedly purchased 470kt in yesterday’s tender including 180kt of Russian wheat at $227/t (-$38/t lower than offer at previous tender), 60kt of Romanian wheat at $229.50/t, 50kt of Bulgarian wheat at $227.50/t all for August shipment and an additional 180kt of Romanian at $230/t for Sept shipment. 

The latest European Commission MARS update noted that rainfall surpluses across the Benelux countries, as well as parts of Germany, France and Italy, have impacted crop development and caused delays to summer crop sowing (up to two months), with heavy rainfall in southern Germany resulting in water-logging and floods in low lying areas. Persistent dry conditions have limited yield potential for winter crops in parts of Hungary, Romania, Ukraine and Russia, where a lasting moisture deficit has negatively affected the yield expectations for winter crops. While yield expectations currently remain positive for Spain, recent heatwaves impacted the condition of winter crops in some eastern regions. The average common wheat yield at the EU level has been revised down 1pc this month to 5.9 t/ha similar to the five-year avg, durum yield was revised down 4pc to 3.3 t/ha, barley was unchanged at 5.1 t/ha which is up 11pc yoy and 4pc above average. Canola yield was revised down 2pc this month to 3.2 t/ha similar to avg. The average corn yield was unchanged this month at 7.55t/ha, up 1pc yoy and 3pc above avg. 

Brazil national agricultural agency, CONAB, reported that as at 23 June, 2023-24 first (full-season) maize harvest was 92pc complete (94pc previous year), with progress in Rio Grande do Sul slowed by rains. Secondary (safrinha) harvest was 28pc complete (11pc), with accelerated fieldwork and positive yields noted in Mato Grosso. Dry conditions aided harvest in Paraná and Goiás but could impact yield potential of late-sown crops. 2024-25 wheat sowing was 68pc complete (69pc), with heavy rainfall hampering sowing in Rio Grande do Sul, with better weather reported in Paraná. 

Black Sea market analyst SovEcon forecast Ukrainian wheat exports to be down 25pc in 2024-25 at 13.6Mt and corn exports to be down 23pc at 22Mt, reflecting a significant reduction in supply due to a decline in area planted and yields. It noted carryover stocks declined amid high export pace in the current season. 

Algeria’s state grains agency (OAIC) seeks 50,000 tonnes of milling wheat for Aug/Oct shipment. 

US private exporters reported sales of 209,931 tonnes of corn to Mexico. Of the total, 22,098 tonnes is for the 2023-24 marketing year and 187,833 tonnes is for 2024-25.

Australia