European market

Delivered Rouen or other French ports wheat prices were firm yesterday due to a satisfactory export pace but also to logistical complications generated by the dockers or railway strikes. In December, the export activity from France has been busy, exceeding the decent level of 1Mt already recorded in November. Several unusual sales toward China have been noticed from the start of the campaign. French operators consider the potential volume to this destination between 800 000 t to 1 Mt for the whole marketing year.

Yesterday, French origins have not been retained by Egypt as part of its last tender. The GASC bought 300 000 t distributed as follow:

• 60 000 t of Russian at 231.95 usd/fob plus 13.50 for the freight i.e. 245.59 cif
• 60 000 t of Russian at 232.48 usd/fob plus 13.50 for the freight i.e. 245.98 cif
• 120 000 t of Romanian at 232.79 usd/fob plus 12.80 for the freight i.e.245.59 cif
• 60 000 t of Ukrainian at 231.16 usd/fob plus 14.77 for the freight i.e.245.93 cif

On the international stage, USA sold 207 000 t of corn to unknown destination.

Tensions are abating between USA and Iran and this has pushed crude oil prices lower to around 60 $/b on the NY market. The euro is weaker at 1.1120 vs dollar.

Rapeseed prices are still underpinned by fundamentals and by palm and canola prices that resumed their upward movement.

On a climatic point of view, soybean cultures in Brazil or in the Black Sea area are not raising any specific concerns so far. However, the hydric deficit of this autumn and abnormally high temperatures in Russia must be monitored along with the lack of a snow layer which is not protecting the crops against possible frost killing.

American market

Traders are awaiting the USDA report of tomorrow and they anticipate seeing the corn production revised down in USA considering the harvesting issues especially in Dakota.

In this context, funds were not busy. They were neutral in corn and net buyers in 5 500 lots of soybean and 3 000 lots of wheat.

Weekly export sales will be released tomorrow due to problems to gather data caused by a snowstorm in Washington.

Black Sea market

The 2019-20’s winter is especially dry and hot compared to normal. Indeed, temperatures recorded are most of the time 5°C above seasonal. During the day, they are positive in Ukraine and on the South district of Russia. Crops are globally in satisfactory conditions for this period of the year on the whole Black Sea area.

Precipitations are scarce from the start of autumn. In consequence, hydric reserves are not recovering. The snow is missing on most of winter wheat areas in producing regions. However, the two weeks’ forecasts are not showing any fall of temperatures with a risk of frost killing.

The main concern of producers is the lack of moisture in the soils and this point will have to be closely monitored in coming weeks.