European market
Most of agricultural prices rallied yesterday on the back of a buoyant international demand and a fall of the USD boosting prices in Chicago. The greenback is currently dealing at 1.1820 vs. Euro and 77.40 vs. Rubble. The crude oil (WTI) is steady at 37.80 $/b. However, the oil demand could be hit by the rapid expansion of coronavirus in the world at the notable exception of China.
On the international stage, Egypt bought 300 000 t of Russian wheat. French wheat offers were cheaper in term of FOB basis but penalized by a higher freight. Out of this volume, 180 000 t will be shipped in the last fortnight of December and 120 000 t between 8 and 18 January. We can note the sale of 106 000 t of US sorghum to China. Saudi Arabia launched a tender for 600 000 t of wheat hard quality to be shipped in the February-March period.
The feed barley is mainly finding support from the Chinese demand and its competitive level vs. the corn for the animal feed buyers.
The corn also benefits from a strong international demand. China could import about 25 Mt this season according Agritel’s estimations. The USDA was only anticipating 7 Mt in its last assessment. A smaller crop in Ukraine seen at 30.5 Mt by Agritel Kyiv also fuels this prices tension.
Rapeseed prices rose sharply in the wake of other vegetable oils, mainly palm, and in a chartist context with the breaking of the psychological threshold of 400 €/t.
American market
US markets were up sharply yesterday, mainly in soybean, which continues to benefit from a strong international demand and a water deficit in Brazil.
China could import a record 100 million tonnes of soybean during this campaign, as a result of the rebuilding of its pig herd and stocks.
Funds were very active yesterday in the US. These players were net buyers in 14,000 lots of corn, 16,500 lots of soybean and 3,500 lots of wheat.
Export sales of wheat this week totalled 597,100 tonnes, down from last week. Sales of maize and soybean remain strong at 2,610,800 tonnes and 1,530,500 tonnes respectively.
It should be noted that at some point, the strong long position held by the funds could lead to ample technical corrections caused by profit takings.
Black Sea market
Despite the fact that European origins are currently highly competitive, the Egyptian state buyer GASC bought 300 000 t of wheat sourced from Russia. Ukrainian and Romanian offers were more expensive. The wheat prices in Black Sea followed he bullish trend seen on most of other exchanges in the world to erase last week losses. The wheat FOB Novorossiysk is currently dealing at $ 256/t. The Ukrainian corn is dealing around $ 236/t, FOB Odessa.