Grain markets are quiet so far today. The main exchanges are seeing low volumes and no major news or numbers have been released to bring activity to the market.
The Taiwan Flour Millers' Association bought 78,320 tonnes of milling wheat from the United States for February and March 2015 shipment in a tender closing today. In their last tender they bought 82,050 tonnes still from the United States. Norh Korea received 22,900 tonnes of wheat from Russia.
Cash markets are quiet elsewhere, buyers are usually inactive at this time of the year and probably reluctant to buy wheat at current high prices
Russian newswires reported the National Association of Exporters of Agricultural Products (NAESP) asked the Russian Government to postpone the exports duties on grains until March 1, 2015. This could have been a market mover but traders little reacted to this headline.
In Australia, the harvest is almost done in the Western Australia region, the CBH system is reported to have received more than 12.7 million tonnes of grain so far.
Corn is almost unchanged on the Chicago overnight session, strong demand and supportive news from China have already been priced in. The wheat premium over corn is still narrowing after spiking last week. Traders are starting to watch and trade this spread more actively.
Yesterday, DuPont confirmed that China has approved imports of its GMO soybean variety called Pioneer. China had previously approved a variety developed by Bayer. US weekly export sales reported by the USDA yesterday confirmed demand is strong at the moment. They were up 18.6% from the previous week at 2.234 million tonnes. Last year for the same week the number was 48% lower.
Demeter Commodities