Grain prices slide as growing global supplies weigh on markets

Few markets were spared with wheat, feed grains and oilseeds prices coming under selling pressure as building global supplies weigh on markets.

US wheat futures fell by more than six percent with European wheat also suffering sharp declines.

A highly anticipated wheat import tender by Egypt's government grain buyer was heavily offered with Russian supplies, as exporters search for improved demand.

Nearly two million tonnes of wheat, which was mostly Russian, was offered into the tender.

However, Russian exporters came away empty handed after Egypt secured just three cargoes of wheat from Ukraine and Romania prices that were sharply below previous purchases.

Sluggish global wheat demand in recent months is expected to see Russia and the EU head into the 2024-25 marketing season with heavy supplies.

It's early days for the world 2024-25 wheat outlook, but favourable wheat patterns in the Black Sea region have forecasters pointing to another massive Russian harvest.

Global feed grain markets also came under pressure after the USDA forecast a ballooning in US corn stocks, in its preliminary 2024-25 forecasts.

They forecast US corn plantings to fall but still projected ending stocks to soar by 17pc to more than 64 million tonnes. This would be the largest since 1987-88, if realised.

Global wheat, feed grain and oilseed importers have been comforted by the improving supply outlook brought by large plantings and mostly favourable weather conditions in key production areas.

Exporters are reporting subdued demand for Australian grains from key overseas markets and when the demand does surface, it's usually for nearby shipment positions.

Benchmark ASX wheat futures have tumbled $23 a tonne in the past two weeks to $347 which is the lowest in more than two years.

Sorghum prices have steadied in recent weeks at $350 delivered into the Darling Downs following the sharp declines in early February.

Yields in the later planted sorghum crops are expected suffer due to the fall armyworm pressure.

Earlier planted crops in Southern Queensland and northern NSW have been very good which is expected to see the national crop exceed two million tonnes.