European market

Exception for the rapeseed market, which rebounded sharply yesterday in line with the rebound in soybean and canola prices, Euronext's trading was relatively quiet compared with the US markets. Heavy rain in southern Brazil and the sharp fall in corn production in Argentina, announced by the Buenos Aires stock exchange, had a major impact on yesterday's session.

In Europe, traders are now closing their positions on old crop wheat, with the May 2024 deadline closing on Euronext next week. There is still a very wide price differential between old crop and new crop, both on the physical and futures markets. In terms of international demand, Algeria has finalised its call for tenders, although the volume contracted has not been announced. However, the prices selected have been announced as being significantly higher than in the last tender in March.

In the new crop, the situation in the Black Sea remains a source of uncertainty. There are still many military tensions there. On a more fundamental level, the outlook for wheat production, particularly in Russia after last month's hot, dry spell, is also driving prices.

American market

Thursday's session was marked by a strong rebound in corn and soybean prices. The Buenos Aires Stock Exchange's drastic cut of 3 million tons of corn production in Argentina for the 2023/2024 season spurred the market on, with the volume announced at 46.5 million tons. Corn yields are down sharply as a result of the pathogenic pressure on crops caused by spiroplasms a few weeks ago.  As a result, in Chicago, the July 2024 corn maturity rose by 2% at the end of the session, returning to its highest level for almost 3 months.

In addition, torrential rain in the Rio Grande do Sul has blocked the completion of the soybean harvest. Soybean prices have also risen. In a single day, the August 2024 contract erased several weeks of declines by approaching $12/bu, its highest level for a month. However, yesterday's biggest advance was for soymeal, which rose by more than 4% on the August 2024 contract, back to its highest levels since the start of the year.

The situation in Argentina and Brazil took a back seat to the slightly disappointing weekly export sales figures for corn and soybean. In wheat, however, confirmed sales cancellations for the current season have held back price growth.