Nevertheless, wheat prices pushed higher following statements from Putin alleging in a speech to a Russian economic forum that the current export of grains out of Ukraine was not reaching poor countries, noting the original deal was designed to alleviate food security issues in countries most at risk, reported the UK analysts.
Consequently, markets were concerned over the possibility of Russia backing out of the deal and wheat prices jumped, they added.
“US and EU corn prices were down as ongoing recession fears and weaker economic growth prospects for China led to a drop in crude oil prices. As corn and oilseed prices are linked to crude oil through its use in biofuels, the hit to crude prices is impacting corn and oilseed markets,” noted a CRM Agri market update.
Moreover, the US Department of Agriculture (USDA) reported that corn and soybean crop conditions held steady over the last week after markets were calling for a deterioration due to the recent hot and dry weather across key producing states, said the oilseed and grain market specialists. "The better-than-expected rating also weighed on US corn and soybean prices."
Record wheat, barley and canola production forecast for Australia
Meanwhile, according to the Australian crop report published on Tuesday, the country’s national winter crop production in 2022–23 is forecast to reach the fourth highest on record, at 55.5m tons.
Australia’s wheat production is forecast to be the second highest on record at 32.2m tons, which is an 11% decrease from the record level reached last year, while barley production is forecast to reach 12.3m tons, the fourth largest on record.
The country’s canola production is expected to reach the second highest on record at 6.6m tons, a 2% decrease from the record reached last year.