European market
The markets were once again decreasing yesterday in cereals in a context of a classic harvest pressure over this period. On Euronext, the decline is accentuated by the rise of the euro posted this morning at 1.1270 against the dollar.
Agritel yesterday revised upwards its wheat production estimate for Russia to 77.5 Mt, including 56.8 Mt of winter wheat and 20.7 Mt of spring wheat. The estimated yields are 3.55 t/ha and 1.72 t/ha respectively. These estimates may be revised in view of weather conditions for spring crops.
On the international scene, Egypt purchased 59 000 t of soybean oil.
The anticyclonic conditions on the hexagon this week will help speed up the winter barley harvest. The very first echoes report a good quality harvest, mainly in grading, with very heterogeneous yields, depending on the region, varieties and sowing dates. This heterogeneity will certainly be seen in many regions for all productions this year, with yields lower than last year's in any case.
As of June 21, the EU had exported 33.23 Mt of wheat, an increase of 64% on the previous year. Barley exports also rose to 7.07 Mt, while corn imports have so far fallen to 19.07 Mt.
Rapeseed prices were once again firm yesterday, in the wake of the palm oil. The latter continued to rise this morning in Kuala Lumpur thanks to good export activity and relaxation of relations between China and the USA.
Crude oil also showed some firmness, posted this morning at 40.50 $/b in New York.
American market
Yesterday wheat prices showed a slight upward correction after a sharp decline of recent days. The harvest sites are advancing rapidly, with 29% of winter wheat acreage cut, up by 14 points from last week, compared to 26% on the 5-year average. The crop rating is up by 2 points on winter wheat, with 52% rated as good to excellent. In spring wheat, on the contrary, the crop rating is clearly down to 75% judged as good to excellent, against 81% last week.
Corn fell back yesterday in a context of current favourable weather conditions in the USA and with a crop rating up by 1 point to 72%, while analysts expected a drop of 1 point.
In soybean, the crop rating is down by 2 points to 70% considered as good to excellent, one point below analysts' expectations.
Funds were yesterday net sellers for 12,500 lots of corn and 1,000 lots of soybeans. They were net buyers for 3,000 lots of wheat.
Black Sea market
For the 2020 harvest, the Black Sea market was decreasing last week, especially in wheat.
In details, for port harvest delivery, feed wheat is trading at 173 $/t against respectively 184 and 186 $/t for 3rd and 2nd class of milling wheat. Barley remains stable at 163 $/t. Corn is posted at 147 $/t for October delivery. Rapeseed returns to test the highest levels since the launch of forward contracts at 415 $/t.
Physical transactions are still limited to barley, the first wheat cuts are not expected to start until early July.