European market

After a decrease at the start of the session, grain prices closed nearly unchanged on Euronext, supported by Chicago and from technical buying on support levels.

Nevertheless, physical prices were pressured in France since the SNCF continues to hinder logistics.

Rapeseed prices registered a downward movement penalized by imports of Argentinian biodiesel and making margins for our industries insufficient. Furthermore, traders are anticipating an increase in canola acreage this year in Canada. In France, Rapeseed flowering is heterogenous.

The Euro continues to be displayed slightly above 1.22 against the dollar. This zone can be considered as a technical support and a breach could lead towards 1.20.

On the international stage, the US sold 130 000 t of soybean to Argentina. Algeria bought 200 000 t of durum wheat from optional origins and for July loadings.

In the context of trade tensions, China has imported 3.1 Mt of US soybean during March and so a downturn of 26.6 % compared to last year for the same period. On the other hand, imports of Brazilian origins were displayed at 2.33 Mt so an increase of 33.3% compared to march of last year.

American market

Rebound on wheat in Chicago yesterday, in a context of buy-backs from the funds that anticipate a sharp decline in US production related to the persistent water deficit. This movement was also supported by a delay in spring plantings.

Soybean and corn sowings are also delayed compared to last year without generating any particular fears for now.

Yesterday, funds were net buyers in 9 500 lots of corn, 3 500 lots of soybean and 6 500 lots of wheat.

Climatic conditions on the Corn Belt will be closely monitored in the coming days, which could animate the market in case of prolonged delay of spring sowings.

Black Sea market

Corn prices in Ukraine are starting to decrease for the old crop and are falling by almost 3 % since the beginning of the week. They are now displayed around 191 $/t CPT. Therefore, the price difference between Ukrainian and US Corn is around 45$/t and so the highest level since the beginning of the campaign. This justifies a realignment of Ukrainian corn prices in a context where it has risen by + 30% since January 2018. In addition, the volumes remaining to be exported are substantial because only 59% of the projected volumes were exported at the end of March, against a five-year average of 70% to date. In this context, Ukraine will have to remain competitive with other origins in order to regain suitable stock levels.