European market

Agricultural raw materials managed to hold yesterday on their Euronext various supports. Rapeseed August contract bounced back to the €520/t area, while wheat September contract did the same when approaching €200/t and corn stabilized above the psychological area of €215/t.
Although competitive towards many destinations, the French origin is struggling to find a demand on an international scene favourable to buyers. The volumes of wheat still available from the main exporters are not likely to worry the suppliers. This is all the more true since, in the northern hemisphere, the weather has been rather favourable and should lead to more than correct production in many areas.
In France, Argus Media is carrying out its traditional crop tour in order to clarify a particularly heterogeneous situation. This crop tour comes a few days after a visit to Romania, where the potentials appear good.
Adjustments may take place in the USDA's monthly report published today. In Argentina, the Rosario Stock Exchange expects a wheat production of 20 Mt, against a range of 18 to 19 Mt previously. The weather in the coming months will nevertheless be crucial to refine the volumes produced locally.

American market

Market's attention will be turned to the USDA, which will publish its monthly report today. Although some adjustments are expected in order to align with the estimates of local entities, history shows that it will still be necessary to wait before observing areas modifications in the United States. Indeed, a quarterly report is expected at the end of the month and could, therefore, be the scene of adjustments for corn and soybeans acreage. The recent spike in fertilizer prices has pushed American farmers to adapt their crop rotation, which could lead to significant changes in the next reports.
Beyond these elements, it is the bearish seasonality of corn that currently prevails, with financial operators cutting their long positions on many markets. It must be said that, for the moment, the climatic conditions are favourable for crops.
In Argentina, the Rosario Stock Exchange raises its estimate of soybean production for the current season and now expects 51.5 Mt. The competition on the international scene remains tough for meal and soybean oil, but the demand is there.

Black Sea market

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