The week began in the red following Chicago for grains and Kuala Lumpur for oilseeds. Palmoil prices registered a strong decrease yesterday after India raised the palmoil import taxes from 15 to 30 %. In this context, rapeseed prices fell more than 3€/t on Euronext.
If climatic conditions are remaining favourable in the northern hemisphere, dry and hot conditions are currently observed in Argentina and will have to be watched closely especially for the soybean crop.
On the international stage, Ethiopia, Iraq and Jordan is seeking wheat. Ships in France are currently being loaded to Morocco which is currently registering a severe drought.
The euro stabilized around 1.1750 against the dollar despite uncertainties linked to the political situation in Germany.
Russian wheat prices are remaining stable at 191 $/t FOB. Barley prices are displayed at 193 $/t and corn at 166 $/t. Also, to note the good stability of feed barley prices, consequence of a global tight balance sheet for this product.
Continuous downturn on wheat prices in a very challenged context on the international stage from Russian origins. The decrease was also fuelled by a rebound of the dollar against other currencies.
Export inspections were disappointing in wheat while they were in line with expectations for corn and soybean.
Soybean prices limited losses in a context of fears about a decrease in Argentinian production after operators reported a hydric deficit in some regions. Oil prices decreased following palm oil.
The USDA announced that the harvest was realized at 96 % in soybean and 90 % in corn on Sunday. This was slightly below trader’s expectations. Crop ratings for wheat were displayed down 2 % at 52 % “good to excellent” in comparison to 58 % last year to date.
Funds were net buyers in 12 000 lots of corn and 3 000 lots of soybean. They were net sellers in 5 000 lots of wheat.
Black Sea market
It was with snow that we started our week in Russia. The main goal of this crop tour which will take place this week is to meet with producers in order to discuss winter wheat conditions. Indeed, the rapid growth of productivity in Russia during the past years has made the country one of the key player on the wheat market.
As part of the EAT (European Agritel Tour) program and in the same way as the last 3 years, our objective is to assess the production thanks to field observations before fields are covered with snow. Afterwards we will publish a first production range for the harvest to come.
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