European market

Yesterday was a calm day on the European markets in the absence of the American markets closed for Labor Day in the USA.

Technical and chartist aspects should dominate ahead of Friday's USDA report, with an attempt this morning to break down wheat support levels in Chicago.

Unsurprisingly for our analysts, Abares shows a sharp increase in the upcoming Australian wheat crop estimate to 28.9 Mt, almost double last year's figure. Australia is benefiting this year from La Nina effect which leads to more moisture on this continent and more water deficit in South America. Abares estimates for barley were at 11.2 Mt and for rapeseed at 3.4 Mt.

The continuing water deficit in France is becoming worrying, especially for future sowings. Rapeseed is already penalized.

On the international scene, Turkey has launched a call for tenders in wheat for about 500,000 t.

As of September 6, Europe had exported 2.94 Mt of wheat to third countries, down by -44% compared to the previous year. The same situation is in barley, with exports of 1.45 Mt, down by -14%.

Rapeseed benefits from the firmness of palm and soybean. Imports to date are down compared to last year, at 1.1 Mt.

The euro remains relatively stable at around 1.1800 this morning against the dollar. Crude oil continues to evolve within the 39 $/b this morning in New York.

American market

Markets closed yesterday 

Black Sea market

While the wheat market on Euronext evolved very little yesterday, the Black Sea wheat market continued to progress. In Odesa, the prices of milling and feed wheat rose by an additional 2 dollars. The wheat FOB Novorossiysk was also up by 3 $/t to 218 $/t. The only ones not fully benefiting from the rise in wheat prices on the Black Sea market are Romanian producers. The CPT Constanta price has remained stable for about ten days at around 171 € (202 $), 2-3 $/t lower compared to the CPT Odessa. The feed barley is also increasing following wheat prices. Corn for the new harvest was sluggish.