European market

The rise of the euro / dollar close to 1.1760 at the highest since early October penalized EU grain prices yesterday. In a context of ample supply and strong international competition, wheat was the most punished yesterday on Euronext with a decline of -1.50 €/t to 188.50 €/t on the March 2026 contract.
The decline in the corn contract was limited to -0.75 €/t with a closing of the March 2026 contract at 186.25 €/t. The wheat-corn spread on the close was reduced to 2.25 €/t. Corn remains supported by the slowness of imports from Ukraine into the European Union. The Ministry of Economy of Ukraine estimates the 2025/26 corn exports since the beginning of the campaign at 4.4 Mt against 8 Mt last year to date.
Argentina, which offers the cheapest wheat in the world for export, remains at the center of attention. The latest upward revision of the 2025 wheat production estimate by the Rosario Stock Exchange yesterday was well noticed by the market. A new record of 27.7 Mt is now expected against 24.5 Mt previously or 20% above the previous record.
Rapeseed is holding well despite the strong euro. It is punctually supported by a burst of demand related to the approval on Wednesday by the German government of the transposition of the European directive on renewable energies RED III.
The international grain market was animated yesterday by the purchase by Tunisia of 125,000 t of soft wheat, 100,000 t of durum wheat and 125,000 t of barley. It is interesting to note that barley was bought around $269/t CIF, that is $12 to $13/t more expensive than wheat, purchased at prices in a range of $256 to $257/t CIF.