European market
Cereals markets continue to evolve with the level of international demand. Algeria is seeking wheat, underpinning front deliveries while prices for next crop are stabilizing. The barley market is still under pressure, both for the current and next crop, due to a lack of demand.
On the international stage, we can note the sale of 285 000 T of US soybean to Mexico.
On March 29, the EU, including UK, has exported 23.94 Mt of soft wheat so far in 2019-20 vs 14.28 Mt last year to date. Barley exports amount to 5.32 Mt vs 3.43 Mt. Corn imports have dropped to 15.84 Mt vs 18.21 Mt in 2018-19 to date. Rapeseed imports have surged to 4.93 Mt vs 3.40 Mt last year.
The dry and cold weather currently in place in France is favouring the end of spring barley plantings but is slowing down the vegetative development of the crops and is drying up the soil superficially.
According AG Rural, the soybean harvest in Brazil was achieved up to 76% on March 26 and the second corn crop is now seeded.
Yesterday, rapeseed prices progressed due to the positive performance of the palm. Many plants have closed in Malaysia due to the coronavirus spreading. On the demand side, India is also facing the pandemic with containment measures and this is drastically cutting the demand.
The euro is dealing at 1.1020 vs dollar and the crude oil rebounds slightly from yesterday’s lows at 21.10 $/b.
American market
Little evolution of US markets yesterday at the exception of the corn that ended the day in negative territory. Despite of a decent export activity, the corn is weakened by the current turmoil on the ethanol market.
Traders will be cautious today before the publication of the USDA report about prospective plantings. According a Reuters poll, the corn and soybean acreage could increase respectively to 94.3 million acres and 84.9 million acres.
Yesterday, funds were net sellers in 12 500 lots of corn and 1 500 lots of wheat. They were net buyers in 1 500 lots of soybean.
Today, markets in Argentina will be closed.
Donald Trump discussed with Vladimir Putin to try to find a solution to the fall of crude oil prices.
Black Sea market
Like Russia or Ukraine that decided of limits on wheat exports until the end of the campaign, Kazakhstan has also reacted to control the inflation on agricultural commodities on its domestic market. During last month, the tengué has dropped by 20% vs dollar. In April, only 200 000 t of wheat and 70 000 t of flour could be exported vs usually 500 000 t and 130 000 t. This measure will significantly limit wheat flows toward usual customers like Uzbekistan, Iran or other countries close to the Caspian Sea.