Great stability on the market yesterday because of reluctant operators to take positions before the long week end and the closing of European financial markets on Monday.
Activity remained strong on Euronext with 54 575 exchanged wheat contracts and 244 contracts for the European CME.
On the international stage, Israël bought 80 000 t of corn probably sourced from South America but also 30 000 t of feed wheat and 20 000 t of feed barley sourced from the Black Sea area. Algeria, on its side, bought 250 000 t of durum wheat probably from Canada.
Due to an abundant harvest, Morocco raised Import taxes to 135 % against 30% previously and this until next December. Even if it is usual to see Morocco raise their taxes at this time of the year, the level of 135 % seems particularly high.
The wheat exports outside Europe are being displayed at 20.29 Mt compared to 24.7 Mt last year during the same period so a decrease of 18%. Barley export numbers registered the strongest downturn with only 4.37 Mt against 9.32 Mt last year at the same date so a decrease of 53%.
According to the latest IGC report, world production for corn in 2017/2018 is awaited at 1.026 billion tons compared to 1.059 this year. Wheat production is expected at 736 Mt against 753 Mt for this campaign.
Rapeseed prices didn’t evolve yesterday despite a setback in palm and soy oil prices. Operators are still displaying concerns regarding the European production in a context of low temperatures.
Corn prices rose slightly yesterday evening in Chicago due to the change of rhetoric of the Trump administration about NAFTA. Indeed, latest news are indicating a renegotiation of the agreement and not a termination.
The persistent rainfalls on the corn belt and raising concerns about delays in seedings led funds to buy back their short positions.The same situation was observed for wheat due to raising concerns of freezing temperatures this week end in Kansas. Only Soybean remained stable yesterday.
Weekly export number were above expectations for all products.
Yesterday, funds were net buyers in 6 000 lots of corn, 2 500 lots of soybean and 6 000 lots of wheat.
Black Sea market
Ukrainian agriculture minister T.Kutovyi explained that the bad climatic situation during the second half of April didn’t affect winter crop conditions. According to him, the precipitations in form of snow participated in the replenishment of soil water reserves.
It is to note that during this period south of Ukraine received an average of 75 mm of water which is partly lifting concerns of hydric stress. Even if it is difficult to forecast the wheat harvest for 2017, the minister suggested a figure at 24 Mt.