European market

Another day of strong upside yesterday on the futures markets on both sides of the Atlantic. The subject of concern for operators does not change: the risk on exports in the Black Sea basin. Attacks are multiplying on port facilities in the Odesa region and on boats loading grain there, while on the Russian side, to the blockage of the Sea of Azov is now added the night suspension of shipments on the major port of Novorossiysk.
At a time when the harvest is in full swing in Ukraine as in Russia, the flow of goods is becoming more and more problematic.
Wheat is at the forefront given the strategic place held by both countries on the world trade in this cereal. But we must not also lose sight of the crucial role of Ukraine in the world trade in sunflower oil or forget the essential need for the European Union to import Ukrainian corn and rapeseed to complete its balance sheet.
It is therefore a global bullish movement that is observed in a market that seeks to put a price on an event whose magnitude and duration are difficult to measure.
The same bullish phenomenon is echoed on the crude oil market. As the strikes rage around the Persian Gulf and the Houtis disrupt navigation on the Red Sea, crude oil prices continue to rise. Brent crude is gradually approaching $100 a barrel in London while WTI's is flirting with $90 in New York. Russia's problems are also fueling this rise in crude oil, between the destruction of refineries, strikes by Russian fleet boats and blockages of port crude oil terminals.

American market

The worries and confusion around grain shipments at the Black Sea ports in both Ukraine and Russia are fueling the increase in all products in Chicago. This is not the only reason for progress since US operators are also worried about the high temperatures that are coming to the west of the Corn Belt with regard to corn and soybeans and the spring wheat growing area on both sides of the Canadian border.
The firmness of crude oil, which continues to progress as flows become more complicated in the Middle East and in the Black Sea, also contributes to strengthening investors' appetite for agricultural raw materials.
Wheat led the bullish charge on US markets yesterday and flirted with its limit-up.  SRW wheat reaches a 2-year high and HRW a 3-year high. Corn has not yet returned to its high of last May but it is gradually approaching it. Finally, the soybean price on the front contract in Chicago is at the highest for 2 years as well.

Black Sea market

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