Russia continues to impact global prices

Russian wheat remains the cheapest origin in the world, and markets appear comfortable that abundant supply will continue to come from the region despite the war.

There have also been more reports confirming multinational grain trading organisations leaving Russia due to the political uncertainty and talk of them nationalising grain exports to support prices.

The actions Russia may take are not expected to impact their export volumes, however they do have the potential to impact prices per their intentions.

At this stage we've seen limited response in prices as markets wait for more detail from the Russians.

Elsewhere in the world, large questions remain over this year's crops.

The first United States Crop Progress report from the US Department of Agriculture since the winter wheat crop entered dormancy was released at the beginning of last week.

The report provides a rating of the condition and progress of US crops.

As at April 3 the US winter wheat crop was rated just 28 per cent in good-to-excellent condition, which was down from 34pc in November before the crop went into dormancy.

For comparison, at the same time last year the winter wheat crop was rated 30pc good-to-excellent and the five-year average is 45pc good-to-excellent, according to Profarmer.

Hence the US winter wheat crop enters the spring period in relatively poor shape.

The fact that US wheat futures markets ended last week slightly lower indicates most market participants were expecting the news and at this stage are unperturbed.

The first condition reports from the Ukraine have also emerged, revealing good conditions there albeit with lower plantings due to the war.

We can expect more crop progress reports from the major producers in the northern hemisphere in coming weeks, which will include progress of spring crop plantings.

Weather during the northern hemisphere spring will impact prices. That's not a new revelation but worth reminding ourselves of.

There is potential for prices to be volatile through this period particularly with tight global stocks.

In Australia, APW1 wheat and lower grades continue to trade in volume across the country.

The price difference between APW1 and the lower grades has been closing, as is often the case post-harvest.

Higher protein milling grades are beginning to trade more sporadically as millers become more covered on required grades, however strong premiums are still being achieved when it's trading.