European market

The grain market has been animated since the upward movement observed in wheat and corn this midweek. The prices return to the levels of last July. This upward movement, supported by fears about the advance of harvests or plantings in different regions of the world, is taking place in the face of the decline of the euro against the dollar in Europe. The euro is back close to its lowest level vs the dollar for a month, trading below 1.1050. This downturn is not positive for importers, forced to readjust the prices of imported products upwards.

Despite the recent upward movement, visible both in Europe and elsewhere, some countries are looking to reposition themselves on purchases in order to cover their needs. Saudi Arabia is launching a call for tenders for 295,000 t of milling wheat.

On Euronext, after another day of strong variation range, only the rapeseed contract marked an increase. The November 2024 rapeseed contratc, which closes at the end of the month, managed yesterday to close the session above 480 €/t. The movement is taking place in parallel with the progression of canola prices in Canada and vegetable oils driven by palm oil. The palm oil returns above 4300 myr/t on the Kuala Lumpur market, levels of last April.

American market

Thursday's Chicago session marked a decline in several products, grains and soybeans, after several consecutive days of increase. Only soybean oil showed further increase. The December 2024 soybean oil contract is trading back close to its highest level since mid-July. This product benefits from the increase observed in palm oil in particular.

However, after the recent rebound, operators note some profit-taking as technical resistance level approach. In SRW wheat, the December 2024 contract has returned to the level of $6.15/bu, testing its highest level for 3 months. Weekly export sales in wheat provided an element of support with an exported volume of 443,700 t reported by the USDA. Exports were also strong in corn and soybeans with weekly sales above 1.68mn t and 1.44mn t respectively.

Already animated by the situation in the Black Sea region, the US market is following with the interest the evolution of weather conditions in the southern hemisphere, both in South America and in Australia.

Black Sea market

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