Russian strikes, price rebounds and China’s mixed price signals

Prices reversed higher across the board this week despite news of large Chinese wheat cargo cancellations.  Following recent Ukrainian drone attacks on Russian oil refineries, Russia retaliated with strikes on Ukrainian ports. In Europe, production downgrades continued for winter crops while saturated soils made spring planting challenging. Markets are very closely watching Brazil’s second corn crop to see if low Safrinha corn planting figures are genuine or simply a strategy to bolster prices. The proportion of US corn and soy area under drought continues to rise, while Canada remains in drought heading into May planting. On the China front, January and February grain import figures were actually up on last year. There is a sense of change in the air from speculative funds, with short position reductions across CBOT corn, CBOT soybeans and ICE canola. Do you have a question for us to answer on the podcast? Email to dennis.voznesenski@cba.com.au

 

 

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