European market
Beneficial rains in Russia and Ukraine pushed wheat prices to decline last Friday both in Paris and Chicago. This bearish trend is occurring close to resistance levels on Euronext. The market has been recently supported by a growing hydric deficit in a large part of Europe. Weather forecasts are predicting a dry and hot weather in coming days and fears on winter and spring crops conditions are increasing.
At the opposite of the wheat, corn prices are gaining some ground, reducing the spread between the two cereals that benefitted to the animal feed sector until now.
At European level, only Spain that benefitted from abundant rains at the beginning of spring should see a satisfactory harvest this summer.
On the international stage, Japan bought 110 573 t of milling wheat and Philippines about 56 000 t of optional origins. Russia provided 75 000 t of wheat to Syria under a program of food assistance.
Without many changes, the Euro is dealing at 1.0890 vs. Dollar this morning and the crude oil (WTI) at 33.50 $/b.
On Friday, FranceAgriMer improved the winter wheat crop rating by 2 points from the previous week to take it to 57% of good to excellent. Rise as well for the barley at 52% vs. 51% the week before. On the other way around, the spring barley is falling to 58% of good to excellent vs. 62%.
Rapeseed prices are steady on Euronext or in FOB Moselle basis while prices in Rouen delivery basis are lower.
American market
In Chicago, wheat prices retreated on Friday due to weather improvement that should benefit to the crops.
Corn prices were in small evolution despite a significant progress in plantings and beneficial rains expected in the Corn Belt. The soybean is experiencing some sell-off due to US-China tensions that could push China to prefer a bit more South American origins for its imports.
The good soybean export figures of last week were positive for the market. The sowing campaign in the US is gaining momentum.
The corn supply for the next season should be ample with the outlook of a record harvest in Ukraine and acreage at a top level in the US.
On Friday, funds were net sellers in 2 000 lots of soybean and 5 000 lots of wheat. They were neutral in corn.
Today, US markets will be closed for Memorial Day.
Black Sea market
The Black Sea area should experience another rainy week with significant precipitations of about 30 mm in average. Romania, all Ukraine, the Central and South districts of Russia will be concerned by this rainy weather that will ease the emergence of corn, sunflower and soybean. In Volga, Ural and Siberia, conditions should be drier and plantings will be completed soon. In Siberia, sowing is 70% achieved so far.
After an exceptional dry spring, recent rains have normalized the 6 months cumulative level over the entire Black Sea with the exception of southern Russia.