European market
Agricultural commodities were better oriented yesterday due to the rebound of stock markets. Nevertheless, Asian stocks are plunging again this morning and the crude oil is tumbling close to 26 $/b on the WTI. In such context of high volatility, cautiousness is required with the strict respect of management frameworks.
On the international stage, South Korea bought 65 000 t of corn, optional origins, and Tunisia purchased 70 000 t of durum wheat. On its side, Algeria would have bought 60 000 t of feed barley.
With the return of a drier weather, spring barley plantings will gain momentum this week pushing prices of the future campaign to lose ground. On the other way around, wheat and feed barley prices were up yesterday due to rumours about possible limits on exports in Russia to better control domestic prices.
COCERAL has revised up its estimation of barley production in the EU to 61.6 Mt vs 60.8 Mt estimated last month. The wheat production is now seen down to 135.4 Mt vs 137.9 Mt seen last month. The rapeseed production is seen as stable at 17 MT vs 17.1 Mt.
In Australia, plantings have begun in good conditions. Local operators are hoping some return to normal following last two years’ dryness.
The Eurodollar is weaker at 1.10. The CAC40 is expected to retreat again at the opening.
American market
Corn prices retreated yesterday in Chicago with the sharp drop of ethanol. This cereal is highly impacted by crude oil and biofuels prices’ fall. Bear in mind that 30% of the US corn is aimed to make ethanol!
Wheat and soybean prices were in small evolution, traders try to figure out the impact of the current pandemic on the demand.
Yesterday, funds were net sellers in 37 500 lots of corn and net buyers in 1 000 lots of soybean and 3 000 lots of wheat.
For the time being, USA has not fully integrated the epidemic risks and the volatility could increase again on US markets.
Black Sea market
Producers are ramping up their spring works in the absence of precipitations. For the time being, Russian and Ukrainian authorities are not communicating about the progression of the works. With higher temperatures than usually, farmers have started sunflower sowing in coastal regions.
With these weather conditions, barley plantings are ahead of schedule.
Both spring sowing and vegetative development of the winter crops are two weeks ahead of normal.
