European market
Wheat prices rose sharply on Euronext at the end of the trading session, in the wake of Chicago. In the USA, traders are speculating on potential Chinese purchases of American wheat. As a result, prices on Euronext rose without an increase in export activity for French origins. At the beginning of this campaign, Algeria is turning to Polish and Baltic origins, which are more competitive than French origins due to the low harvest in France.
Diplomatic tensions between China and Australia continue. This leads to a ban by China on Australian barley. This can be seen as an opportunity for French origins to export to China, but also leads to Australia being more aggressive on other destinations.
On the international scene, we also note the sale by the USA of 596,000 t of corn to China and 132,000 t of soybeans to undisclosed destinations.
Corn prices are supported by the current water deficit in Ukraine and the USA. In Ukraine, Agritel's consultants completed their crop tour last Sunday. The conclusions of this crop tour are available in the BSH (Black Sea Highlight).
Rapeseed prices did not change much yesterday, although the palm oil prices have strengthened. Vegetable oil prices seem to be marking time in their progression and after having reached a high for 7 months, the palm is slightly down this morning in Kuala Lumpur.
The dollar strengthens slightly this morning against the euro at 1.1900 after testing the 1.20 level yesterday during the day. The crude oil remains very stable at 43.00 $/barrel on New York.
American market
Yesterday in Chicago wheat prices showed an increase of more than 10 cents/bushel, while soybean and corn prices were little changed. The reason for this is the traders’ hope to see China come to the US wheat purchases, after the large purchases made in recent weeks in soybeans and corn.
Funds are fueling the rise with net purchases of 11,000 lots of wheat on yesterday alone, now positioning them long in the market, which is not usual. Their activity was calmer in corn and soybeans, where they were net buyers yesterday for only 1,000 lots per commodity. Uncertainty remains about the impact of the water deficit of the last few weeks on the next harvest.
Soybean oil prices made a pause yesterday, after the recent increases, just like other vegetable oils.
Black Sea market
While the first cuts of sunflower and soybean show disappointing yields and reduced oil content for sunflower, prices for these two crops are at levels never seen before for a season launch. This is the case for prices in both hryvnia and dollar.
On a central EXW basis, soybean seed is priced at around 400 $/t including VAT, compared to around 410 $/t for sunflower seed.
As is the case on the Ukrainian corn market today, these price levels reflect strong demand on the import side for both sunflower oil and soybean meal.