European market
European operators are following with great interest the American announcements on the implementation of customs duties between the USA, Canada, and Mexico, and the ongoing negotiations before their possible deployment. The evolution of the Sino-American relationship will now gain more media attention due to the reciprocal tariffs announced yesterday by Beijing. For now, in Europe, despite this uncertain trade context, the euro is slightly strengthening and rebounding after its recent low, now trading below 1.0400 against the dollar.
On Euronext, grain prices saw little change yesterday, showing prices almost identical to the previous day. Market participants remain attentive to the evolution of export demand for both soft wheat and barley at this time of the year. After a sluggish start to the campaign from Western Europe due to competition from the Black Sea, activity remains to be monitored.
Oilseed prices were rising on Euronext. The movement was supported by the firmness of oilseeds across the Atlantic. The ongoing negotiations between Canada and the USA provide reassurance for Canadian outlets at least in the short term for canola and thus provide a support factor for canola seed and oil. While awaiting the monthly release of palm oil production volumes in Malaysia, the market is also firming up in Kuala Lumpur. The expected production decline now needs to be confirmed but already brings some firmness to oil prices.
American market
In response to the new tariffs on products from China decided by President Trump, China has in turn decided to implement tariffs of 10 to 15% on various American products, including natural gas and crude oil. The discussions announced between the American President and Xi Jinping at the beginning of this week have not yet taken place, leaving the parties open to negotiation. American agricultural exports are not currently affected by these new tariffs, providing funds an argument to reposition themselves on these products in this period of political tension.
Grain prices experienced an increase yesterday, showing another day of significant variation. Wheat prices are now trading at their highest levels since last November. The March 2025 contract is now trading below $5.80 per bushel.
Corn in Chicago also rose, trading near its highest levels of the past week. An exceptional new sale was reported yesterday by the USDA for a volume of 132,000 tons to South Korea. The nearby contract is now trading above $4.90 per bushel, erasing the decline of the last three sessions.
For soybeans, seed prices are also recovering, testing the resistance zone of $10.75 per bushel on the March 2025 contract. Prices for this contract are now at their highest levels in recent weeks and especially equivalent to their highest level in four months. The South American weather situation is still being monitored.
