European market
The situation is increasingly complex on the markets, close to paradoxical due to port strikes. If demand on the international scene supports prices, this is all the more true in ports where the situation is tight, with difficulties in supplying elevators, but also in loading ships. The availability of port elevators is becoming scarce, which leads to an increase in premiums for what can be transported to ports. At the same time, the operators start to face difficulties to execute the physical export contracts, leading shippers and buyers to seek alternatives in neighboring countries.
In this context, the prices on Euronext enter in reverse or backwardation condition, with close delivery prices higher than on future deliveries.
On the international scene, Japan is purchasing 108,296 t of milling wheat from the USA and Canada. South Korea bought 69,000 t of corn from South America.
Rapeseed decreased a little yesterday, still in the wake of the palm. The palm market is shared between the drop in production in Malaysia and the restriction of demand by India. In addition, operators are still waiting for the concretization of Chinese purchases of US soybeans as part of the trade agreement signed on January 15.
The euro, meanwhile, has evolved very little, posted at 1.1080 against the dollar.
American market
Yesterday in Chicago, wheat and soybean prices were moving in opposite directions. Thus, tension is confirmed in wheat, while in soybean the prices lost ground. The rise in wheat prices is the result of good international demand and prices in the Black Sea basin at the highest of the year. The decline in soybeans is a reflection of traders' loss of patience with exports to China, still not showing any acceleration.
The funds were net sellers yesterday for 7,500 lots of corn and for 8,000 lots of soybeans. They were net buyers for 7,500 lots of wheat.
Export inspections yesterday were, however, on top of expectations for soybean at 1.2 Mt. In wheat, the figures were below expectations at 435,129 t and in corn also below expectations at 345,859 t.
Note that competition from Brazil in soybeans will soon be felt with the start of the harvest.
Black Sea market
Cereal prices in the Black Sea area continue to recover from the low point of the season reached in September. Since the beginning of the year, wheat prices show the most firmness displaying for delivered port Odessa at:
• 209 $/ t for the 12.5%
• 208 $/t for the 11.5%
• And 205 $/t for feed wheat
Corn prices (171 $/t) are above those for barley (170 $/t).
These high price levels encourage Ukrainian producers to settle their sales of wheat and advance in corn.