European market
Bearish correction was seen yesterday on many financial markets. The US stock indices are leading this decline and are starting to doubt after their last bullish movement which brought them to new records last week. Crude oil is also down, back below $60/barrel in New York amid excessive global supply and worries about the slowdown in US demand. The dollar is also weakening on the echo of a private survey evoking a sharp decline in US employment in October.
In this context, the sudden rise of the euro /dollar to 1.1550 yesterday, combined with a decrease in prices on all products in Chicago, pressured prices on Euronext. Wheat, corn and rapeseed thus lost previous gains.
Black Sea wheat prices continue to evolve according to the local fundamental balance of the moment.
In feed barley, the international market is attentive to the tender results which ends today for Tunisia with 75,000 t sought. Faced with a tight barley supply in the Black Sea and in anticipation of the new harvest in the Southern Hemisphere, the EU origins could take their market shares.
American market
A week after the meeting between Donald Trump and Xi Jingping, the US grain market is impatient. The massive purchases of soybeans announced with12 Mt sold by next January 1st do not materialize, while China continues its purchases of Brazilian soybeans. The rumours of purchases of US wheat by China would finally concern only 2 panamax of 60,000 t each. This impatience of the operators comes at the same time as a downward correction of the US financial markets. The funds returned massively to the sale yesterday on all agricultural products on CME.
In South America, the weather conditions continue to be favourable for the next harvests to come in the first months of 2025. The Buenos Aires Stock Exchange indicates that sowing begins in Argentina with "optimal" humidity conditions. It expects strong production in 2025/26, estimated at 48.5 Mt of soybeans and 58 Mt of corn.
Black Sea market
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