European market
The return of the euro against the dollar, above 1.04, did not slow down the rebound in wheat prices yesterday on both the physical markets and the Euronext market. Prices for the current campaign rose by more than €4/t at the end of the day, thus erasing the decline of the last 4 sessions. The movement observed was above all supported by the evolution of grain prices in the United States, which were themselves supported by the speech of the new American president. Despite everything, European players are vigilant in terms of competitiveness in the face of the different origins present, with of course the Black Sea and also now the return of Australian wheat to the export scene.
Higher wheat prices also contributed to a firmer element in corn prices, albeit to a lesser extent. The close maturity on Euronext, March 2025, was back above €216/t at the end of the day.
After a day largely marked by a pullback phase for rapeseed, following the previous day's decline in canola and palm oil, the market finally ended the session slightly higher on the May 2025 contract yesterday. In the new harvest, prices are also rising and are back above €490/t for the August and November 2025 maturities.
American market
The first session of the week in Chicago, after the holiday in honor of Martin Luther King, was lively. Corn prices have risen sharply. The March 2025 expiry closed the session at $4.90/bu, returning to its highest level since last June. The speech of the new president-in-office reassured the speakers about the non-immediate deployment of import taxes on the various trade outlets of the United States. In addition, the situation in Argentina, which was already driving prices last week, is maintaining the movement due to dry conditions despite the few recent rains observed.
Soybeans also posted a strong increase and a new high yesterday, returning to the levels of October 7. The activity of the funds in purchasing has been noted. The South American situation and the delay in the new president's decisions related to import taxes offered support to prices yesterday. Nevertheless, it remains important to monitor the possible deployment of taxes on imports, particularly on Canadian products, in the coming weeks.
The dynamics of corn have also been favourable to wheat prices. The cold temperatures recorded on the plains bring a risk to the crops in place. The price of wheat in Chicago, for the March 2025 deadline, marked at the end of the session an increase of +20 cents/bu compared to Friday, to its highest level in more than a month, closing below $5.60/bu.
