Global grain market: on Monday, wheat and corn in Chicago fell, soybeans rose in price

On Monday, October 16, 2023, Chicago Board of Trade (CBOT) wheat futures closed lower. At the end of the trading day, December quotations of soft winter wheat on the Chicago Mercantile Exchange CBOT fell to $212.10 per ton, December futures of hard winter wheat KCBT in Kansas City - to $245.71 per ton, December futures of hard spring wheat MGEX, on the contrary, rose to $267.77 per ton.

Chicago Board of Trade wheat futures closed lower on Monday after earlier rising to their highest level in more than two weeks on hopes for global demand. Corn futures also fell as traders eyed the U.S. crop, while gains in soybean oil futures helped lift the soybean market.

After the auction ended, the US Department of Agriculture reported that farmers had harvested 45% of the US corn crop and 62% of soybeans. Analysts expected the corn harvest to be 46% complete and soybean harvest 57%.

The most active December wheat contract, the CBOT, ended down 2-1/2 cents to $5.77-1/4 a bushel. Futures earlier hit their highest price since Sept. 27 at $5.88-1/2, extending their rebound from a three-year low in September.

The largest weekly U.S. export sales in more than a year and sales of soft red winter wheat to China pushed prices higher late last week. “China bought 181 thousand tons of American wheat, and there are expectations of more deals,” said a Singapore trader. “Lower quality American wheat is competitive in the market.”

However, competition in the global export market remains high, consultancy Agritel said. The Russian agricultural consulting company ICAR has slightly increased its forecasts for the total volume of grain production and exports to the Russian Federation this season.

December CBOT corn was down 3-1/4 cents at $4.90 a bushel and soybeans were up 6 cents at $12.86-1/4 a bushel. December soybean oil prices rose 1.52 cents to 55.90 cents per pound.

At the Chicago Board of Trade (CBOT) on Monday, contracts for delivery in November and December:

wheat (DCBR 2023) - 212.10 dollars/t (20,640 rubles/t) - minus 0.42%;
corn (DCBR 2023) - 192.91 dollars/t (18,770 rubles/t) - minus 0.66%;
soybeans (NBR 2023) - $472.61/t (RUB 45,990/t) - plus 0.47%;
rice November (November 2023) - 774.38 dollars/t (75,350 rub./t) - minus 0.94%;
rapeseed (ICE, Nov. 2023) - 723.20 cad/t (51,530 rub./t) - plus 0.44%.

The French grain market was little changed on Monday. At the end of the trading day, December quotes for milling wheat on the Paris MATIF exchange did not change, remaining at the level of €237.25 per ton (in dollar equivalent they decreased to $249.33). November corn quotes increased slightly - to €201.75 per ton (in dollar equivalent - to $212.02).

On the Paris Exchange (MATIF) on Monday, quotes for November and December contracts at the closing of trading were:

flour milling wheat (DCBR 2023) - 249.33 dollars/t (24,260 rubles/t) - minus 0.16%;
corn (NBR 2023) - $212.02/t (RUB 20,630/t) - plus 0.59%;
sunflower (Oct. on the SAFEX exchange - 8525.00 zar./t (43740 rub./t) minus 0.94%;
sunflower oil (Oct. Rotterdam, bulk FOB) - 910.00 USD/t (88550 RUB/t) 0%.

For reference, exchange rates as of 10/16/2023:
97.3075 rub. = US dollar
102.5573 rub. = Euro
RUB 71.2510 = Canadian dollar
51.3112 rub. = 10 South African rand