European market

Yesterday was calm for European grain market with US futures market closed for Independence Day.

Harvest resumed yesterday in France, with heterogeneous yields in winter barley. First, rapeseed fields show good yields for the moment.

It was a small day for Euronext Milling Wheat with a total volume traded of 30 201 contracts. Euronext adds Simarex grain silo as a new delivery point for wheat futures for September 2018.

While operators are waiting for results of the last Algerian wheat tender, a new Egyptian GASC tender was launched for August 5-15 shipment. Black Sea wheat should be again the more competitive origin on the Egyptian destination.

Jordania bought 100 000 tonnes of optional feed barley yesterday. As for wheat, Black Sea looks the most competitive on this purchase.

Wheat harvest have just started in France and yields seems to be very heterogeneous this year. Quality should be quite ok despite the last rain event.

Rapeseed was firm yesterday with Palm Oil support due to some disappointing rumors on Malaysian production.

American market

US markets were closed yesterday due to Independence Day

Black Sea market

Despite a weekly increase of wheat prices on Chicago by more than 30 $/t, and more than 10€/t on Euronext, Black Sea traders are cautious to translate the rally on cash market. Because wheat supply will be bigger on the next weeks with the beginning of the harvest, traders are waiting before rising forward prices.

Thus, spot cash prices delivered ports are quoted as below :

• Wheat 12.5% : 166 $/t
• Wheat 11.5% : 163 $/t
• Feed Wheat : 152 $/t.

Local prices offered by traders were pretty stable for the last 8 days. Without a rebound of cash prices, Black Sea wheat will be very competitive on export markets. Indeed maximum FOBing cost is 17 $/t in these countries.