Global wheat markets took a hit last week after the latest USDA WASDE report increased global wheat stocks by 2.4 million tonne (Mt) from the previous report, pegging it at 278.2Mt.

Revised production estimates for Australia (+2.5Mt), Russia (+1.0Mt), and Canada (+0.65Mt) outweighed any uplift in the demand figures, the AHDB reports. This added pressure to wheat markets early on Friday.

China active

Refinitiv sources state that China has bought “large volumes” of French, Ukrainian and Australian feed grains (wheat, barley and maize).

Buyers were likely seizing the comparatively low prices wheat slipped to on Thursday. This purchasing comes despite the recent Chinese maize harvest, and troubles within the pig industry.

Australia

The Australian harvest will likely cap gains from Chinese demand prospects. Despite recent interruption from wet weather, Australia is set for a bumper crop for the second year running.

The bumper crop will likely ease supply concerns, at least in the feed wheat market. The Australian bureau of meteorology (BOM) anticipates drier than average weather in Western Australia, the largest wheat growing state or territory in Australia, from 20 December to 2 January.

South America

Dry weather is causing concerns for the current maize crop, but also may lead to the second crop being planted into dry conditions in early 2022 in South America.

This will particularly affect maize markets, which are relying on big crops from key exporters, Argentina, and Brazil.

Oilseed rape

Old-crop oilseed rape prices found support across last week as Brent crude oil (nearby) rebounded 7.5% to close Friday at $75.15/barrel.

Paris rapeseed futures (May 2022) gained €16.75/t across the week, to close Friday at €664.75/t. New-crop prices (Aug 2022) closed at €553.50/t, down €1.50/t across the week.