European market
On Euronext, wheat prices are now testing their lowest levels from the start of the year. European export sales remain subdued and are lagging behind USDA’s targets at European level and FranceAgrimer’s objectives at French scale.
The European Commission said that wheat exports during this week only amounted to 365 000 t, taking the total to 8.1 Mt from the start of the marketing year vs 10.1 Mt last season to date. Barley exports on their side recorded 160 000 t in the week, taking the total to 2.13 Mt vs 1.73 Mt last season to date.
As expected, Saudi Arabia launched a new tender in 720 000 t of feed barley. Bids will be submitted today, and deliveries are planned in January to February.
The International Grain Council (IGC) has published its monthly estimations, the organization has revised up its global corn production forecast by +6 Mt from last month to 1 040 Mt. Wheat output is now seen at 749 Mt, up by +1 Mt. Soybean production has been left unchanged at 348 Mt.
According the Argentinian Agriculture Minister, the wheat production would reach 18 Mt this season. Corn surfaces are seen at 8.8 M ha and those of soybean at 16.8 M ha.
In a reduced activity linked to Thanksgiving celebrations in USA, the euro remains well oriented around 1.1850 vs dollar.
Rapeseed is losing some ground following the trend observed in Kuala Lumpur on the palm. Few changes are expected at markets’ opening this morning.
American market
Markets were closed yesterday for Thanksgiving and will reopen only for half a day today.
Black Sea market
Nikolaï Gorbachov, President of the Ukrainian grain exporters association, gave some details about train traffic difficulties experienced in Ukraine.
Last year at the same period, between 1 700 and 1 800 freight wagons were loaded every day against only 1 100 to 1 200 by now. Ukrzaliznytsia, the national Ukrainian railway can only face 25% of traders’ demand.
The Association of grain exporters is backing the recent increase of rail fret fares but is asking for improvements in term of organization and national investments program to cut the deficit of wagons. The country is only counting 16 000 freight wagons today and according Mr. Gorbachov 5 000 more would be necessary to face the quick rise of cereals and oilseeds production.
