European market

This start of the week is marked by a strong strengthening of the euro, particularly against the dollar, as it climbs back to its highest level since last September, moving above 1.1850 and even flirting with 1.1900. This rise directly implies a downward adjustment of European grain prices, as this factor weighs on European export activity and naturally supports imports of other commodities. European exporters are therefore closely monitoring the evolution of Argentine wheat prices at the beginning of the second half of the marketing year, given the exportable volumes and the prices currently offered to importing countries.

On Euronext, wheat and corn futures unsurprisingly closed lower. For wheat, the Mar 26 contract slipped back below 190 €/t, posting 189 €/t. Corn followed the same trend, with the Mar 26 contract posting 192 €/t. Only the nearby Feb 26 rapeseed contract, which expires at the end of this week, settled higher, up +1.25 €/t at 482.25 €/t. The following rapeseed contracts, however, also recorded declines, in parallel with the drop in rapeseed oil observed yesterday.

American market

The renewed decline of the dollar against various currencies, with the dollar index now back to its lowest level in 4 months, provided support to U.S. commodity markets. Prices had a volatile session, with many products initially firm reaching their highest intraday levels in more than 6 weeks for wheat and 1 month for soybeans, before retreating under selling pressure from funds. The March 26 SRW wheat contract closed at 5.22 $/bu after reaching 5.33 $/bu during the day. In soybeans, after a brief move above 10.75 $/bu on the March 26 contract, prices closed lower, below 10.62 $/bu. The soybean oil market showed a similar pattern, posting a new 5‑month high during the day on the March 26 contract, then ending below 54 c$/lb.

Current weather conditions in the U.S. do not appear to be causing concern at this stage, thanks to the snow cover present across most winter‑crop regions. However, some areas do not have the same snow protection, which will need to be monitored in the coming weeks given the very low temperatures. As expected given the current conditions, logistical activity has been disrupted. However, some anticipatory measures were taken last week to limit short‑term supply difficulties.

Black Sea market

Click here to request full access to the AgriMarkets report to find out more about the Black Sea region, and follow price trends in Russia on a daily basis.