European market

Wheat prices recorded gains on Euronext yesterday, the market has been boosted by the progression seen in Chicago where some traders covered their shorts before Thanksgiving this Thursday.

Too wet conditions in the west of Europe added to dryness in some parts of the Black Sea region are also contributing to support prices. In Black Sea, prices increased during last week with producers’ retention. Autumn sowing in Russia have been larger than last year, it is an open question whether spring surfaces will be reduced in same proportions.

On the international market, Ethiopia is seeking 75 000 t of wheat.

Palm oil declined yesterday after the release of disappointing export figures in Malaysia and due to profit taking after the rally of last weeks. The rapeseed dropped as well without having breached its resistance area of 392 €/t.

The dollar is strengthening versus euro on the back of hopes to see USA and China sealing a deal. Same scenario for the crude oil, the WTI is dealing above 58 $/b in NY.

American market

Wheat prices rallied in Chicago yesterday mainly due to short covering from the funds. The US wheat acreage will fall again this year and set a record low level.

The crop rating released last night has been left unchanged at 52% of good to excellent, traders were anticipating a one-point drop from the previous week.

Yesterday, funds were net buyers in 11 500 lots of corn and 10 500 lots of wheat. They were net sellers in 4 500 lots of soybean.

The soybean remains penalized by the slow progression of US-China talks.

The US soybean is now harvested up to 94% vs 91% last week and 97% on 5-year average. The corn is harvested up to 84% vs 76% last week and 96% on 5-year average.

Export inspections were above expectations in soybean and in line with anticipations for the wheat and corn.

Black Sea market

The pace of wheat shipments from Ukraine and Russia is slowing down progressively. These two countries have loaded 500 000 t each during last week while a pace of 1 Mt was more usual at the beginning of autumn. In Ukraine, this trend was expected as two-thirds of the export’s availabilities have already been shipped. The priority is now to export corn and answer to a strong demand for this cereal. During next 6 months, about 1 Mt will be shipped in weekly basis.

The slowdown in Russia is explained by a lesser competitiveness compared to Ukrainian or European origins. The domestic demand remains busy.