European market

The further increase of the euro against the US dollar strengthens the concerns of European traders as the new harvest approaches. The parity thus returns above 1.15 and consequently approaches its highest levels observed last April. However, the demand from international buyers is currently limited. However, this element mechanically implies adjustments in order to keep the existing price differential compared to other origins.
The Euronext September 2025 wheat contract have marked an increase several times during the session yesterday above the level of € 200/t to finally close at €199.50 /t, a slight increase compared to the previous day. In corn, prices for the 2024 harvest, August 2025 contract on Euronext, marked a new decline, approaching their lowest level since last July. In the new harvest, however, corn prices have changed little. In grains, the weather conditions announced in part of France, with a rise in temperatures and dry weather, should make it possible to favour the first barley harvests in the earliest regions. The first cuts, which started at the beginning of the week, will gradually accelerate by the end of the month.
In oilseeds, after the recent test of the €490/t level, rapeseed on August 2025 Euronext contract showed a new decrease yesterday. The market remains attentive to the evolution of crude oil prices. Palm oil in Kuala Lumpur is showing a slight rebound this morning, compensating for the downward movement of the previous day. The stabilization of Canadian canola prices, which in turn test an important resistance zone, does not provide any new support element at the moment.

American market

The announcement of the framework agreement between China and the USA on import taxes reassured operators after a new phase of negotiations carried out at the beginning of the week. Any agreement, even if the level of taxes is up compared to the initial situation, removes the context of uncertainties that has been hovering for several months. This announcement above all favoured a rebound in crude oil, which later also progressed in direct connection with the renewed tensions between Iraq and the United States. This upward movement helped soybean oil prices, which closed above 48 cents/lb in Chicago on the front contract.
The prices of other products, on the other hand, did not benefit from this movement. Wheat prices did not change much yesterday, closing down slightly compared to the previous day. The operators do not seem to be trying to move their positions while waiting for today's monthly USDA report. 
After a dynamic start to the session in corn, where the July 2025 contract was coming back to test its recent highs of the past week above $4.45/bu, prices finally ended the session with a slight decline. The downward movement is more marked in soybeans. Despite the prospect of an agreement between China and the USA, these products will nevertheless be penalized by the new taxes announced, taxes that will handicap trade between the two countries.  A few hours before the monthly publication of the USDA, the new decline of the dollar index, close to its lowest level in April, does not seem to provide strong support for prices, despite an export activity logically favoured by this new relaxation of the dollar against many currencies.