European market
European exporters remain focused on the evolution of the euro/dollar parity, which has risen by nearly +2 % over the past week and is still hovering very close to the 1.20 level after the renewed firmness seen since Tuesday. The slight easing observed yesterday somewhat limited the pressure on prices compared with the previous day. With still-large production volumes to be marketed before the end of the season, Western European operators remain very vigilant to stay competitive against other available origins, including the Black Sea. The recent decline in grain prices is also prompting importing countries to step in, as illustrated by Tunisia, which yesterday finalized its tender with the purchase of 100,000 t of milling wheat and 100,000 t of durum wheat.
Prices on Euronext rebounded yesterday, thus erasing the downward move seen the day before on wheat, where the Mar 26 contract is once again testing the 190 €/t level. The increase in corn prices was smaller after the recent highs reached at the start of the week. On corn, the Mar 26 contract on Euronext posted a modest rise at 191.50 €/t, thereby narrowing the gap with the wheat price on the nearby contract. On this point, the wheat/corn spread on Euronext is shrinking, or even reversing, the further out the delivery periods go.
In oilseeds, alongside an active session for the Feb 26 contract, which expires at the end of this week and whose daily trading range exceeded 10 €/t, the prices of subsequent contracts moved higher. The May 26 contract is once again trading at its highest level since December, hovering near the 480 €/t threshold, also supported by firm Canadian canola prices.
American market
The Chicago market saw an increase yesterday in soybeans and grains. The decline in the US currency provides an excellent context for US origin to regain export interest, thus offering a supportive element to prices on the CME. This weakening of the dollar, even as the US central bank kept its benchmark rates unchanged yesterday, is encouraging funds to take some buying positions. Corn prices thus closed on the nearby contract at 4.30 $/bu. On the physical market, occasional logistical difficulties are still being observed due to weather conditions, as snow and ice are slowing flows. SRW wheat prices also moved higher, returning to test an important resistance area below 5.40 $/bu for the Mar 26 contract.
In soybeans, firmness was even stronger during the session for the soybean seed, with traded prices moving back above 10.80 $/bu for the Mar 26 contract, briefly reaching their highest level since mid‑December. By the end of the session, prices for this contract closed at 10.75 $/bu, their highest level in a month. The current hot and dry conditions in Argentina also provide a supportive element, now that soybean planting is nearly complete and rainfall is increasingly awaited.
The renewed tension between the USA and Iran is pushing oil prices higher, with crude trading near 64 $/b in NY. Some operators fear a possible US intervention in the area after the recent deployment of naval and military forces.
Black Sea market
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