European market

We had to keep an eye on Euronext corn during yesterday's session to see that the latter was the main driver of the increase. After the announcement by the French ministry of a decrease in areas of -19% compared to last year, at 1.31 Mha, corn had moved up. At the same time, the rebound was fueled by hot weather forecasts for coming days. No more was needed to offer a reason for a rebound for European prices, which are also moving away from their support.
Wheat December contract is back above €210/t, even if the September contract is reacting less because of the looming harvest pressure and fears about market opportunities. Without Morocco and Algeria, it is difficult for the French offer to find its way on the international scene. The only real hope is the possible return of China, which is currently fueling discussions among European operators.
Moreover, Algeria was at the purchases yesterday, following the announcement of a new call for tenders. Announced around 800,000 t, the contracted volumes should mainly come from the Black Sea and Romania. Egypt is also back for trade mainly with Russia, which naturally comes to compete with French wheat likely to reach this destination.
In oilseeds, sunflower areas, up by almost 11% in France, constitute a factor limiting the increase in rapeseed. However, with the weather in the coming days, nothing is guaranteed in terms of performance, which can turn the tables on the entire complex. At the dawn of the rapeseed harvest, the operators are perplexed as to the yield estimates, while the flowering was marked by a strong heterogeneity according to the zones.

American market

Close to $75/barrel in New York, WTI crude oil has given up almost $20/barrel since the beginning of the month. It must be said that the hope of seeing the Strait of Hormuz reopen in the coming days justified this withdrawal.
Despite the decline in crude oil, agricultural raw materials put an end to the downward of recent weeks. SRW wheat rebounded above $6/bu, while corn managed to move away from $4.20/bu. However, this remains well below the $4.85/bu at the end of May and is explained by the so far mild growing conditions.
On the international scene, we note the new exceptional sale of 372,000 t of soybeans for an unknown destination. This naturally revives the hopes of seeing China return significantly to purchases, after the promises made during the last visit of the American president to the country.

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.