European market
The end of the week was marked by strong daily amplitude, finally on Friday evening the grain market chose to believe in optimism about progress in the peace negotiations in the Black Sea. Wheat and corn prices have erased part of their risk premium on Euronext as on Chicago. These weekend profit-taking events take place in a context of particularly long positions on the part of the funds.
The highly anticipated visit of the American representatives Steve Witkoff and Jared Kushner to Moscow on Saturday to Vladimir Putin, then to Kyiv on Sunday to Volodymyr Zelensky, did not reveal any inflection on the ground. The blocking of grain and oilseed exports from the main Russian and Ukrainian Black Sea ports remains the main driving force in the grain market to date.
Only rapeseed closed higher on Euronext on Friday evening, in a tight fundamental context in Europe and with the support of a still firm crude oil market. Attacks and reprisals continue in the Persian Gulf and maintain the firmness of crude oil, with a barrel of WTI above $90 in New York.
In corn, the state of crops in France continues to deteriorate. The Céré'Obs report by FranceAgriMer shows that only 27% of the areas considered "good to excellent", down by 1 point over the week and against 62% on the same date last year. The harvest starts early with a national advance of 3% on August 31. The Pays de la Loire region is the most advanced with 10% of the areas already harvested on Monday, August 31st.
American market
Strong profit-taking movement weighed on prices on Friday in Chicago in the context of particularly high long positions for corn, soybeans and wheat. The negotiations of the American envoys expected for the weekend in Moscow and Kyiv, have increased the selling pressure, and this before a long weekend. Indeed, the American markets will remain closed this Monday on the occasion of the "Labor Day".
Beyond the situation of blockage in the Black Sea, American operators will position themselves throughout the week in anticipation of the USDA's WASDE report, which is due to be published this Friday, September 11th. In a context of downward revisions of the yield prospects by analysts and private operators, the official US balance sheets will be closely scrutinized.
Also noteworthy is the announcement on Friday of a new exceptional sale of 250,600 t of American soybeans for an unknown destination, according to the USDA. The total sales made last week to unknown destinations or to China are approaching one million tons.
Black Sea market
Click here to request full access to the AgriMarkets report to find out more about the Black Sea region, and follow price trends in Russia on a daily basis.
