European market
Wheat prices on nearby deliveries in the ports remain well oriented due to our good export competitiveness. France managed to sell three wheat cargoes or 180 000 t in yesterday’s wheat tender organized by Egypt. Russia on its side sold 60 000 t to the North African country. This good level of export demand is contrasting with the subdued domestic milling activity.
On the international stage, South Korea bought 206 000 t of corn sourced from South America. Due to EU’s and largest exporters pressure, Romania has cancelled its export ban toward third countries for contracts signed after April 10.
In Argentina, harvesting works are progressing at a decent pace. The country is poised to produce 50 Mt of soybean and 50 Mt of corn. Works are achieved at 37.8% in soybean and 32.7% in corn.
Canola and palm prices lost ground this week in the wake of the crude oil which is still dealing below 20 $/b in NY. The euro is steady at 1.0870 vs. dollar.
Insufficient rains are expected during the weekend in France, some precipitations should also relief the crops in the Black Sea area, especially in the South of Russia.
American market
US markets were gloomy yesterday. The current US wheat and corn export pace disappoint traders at a time the ethanol demand is plunging.
Corn prices are at lowest for last three and a half years. A part of the 130 Mt used by the ethanol sector will have to find other outlets. As well, the US corn acreage should be large in the next season.
Yesterday, funds were net sellers in 4 500 lots of soybean and 6 500 lots of wheat. They were net buyers in 2 500 lots of corn due to short covering before the weekend.
Weekly export sales have been displayed as follow:
- 969 500 t of corn, in the range of expectations
- 304 700 t of soybean, below expectations
Black Sea market
From the start of the week, next harvest forward prices have stabilized.
A Ukrainian producer is able to hedge at following prices (port delivered):
- Wheat 11.5%: 178 $/t
- Feed wheat: 169 $/t
- Feed barley: 159 $/t
- Corn: 148 $/t
- Rapeseed: 389 $/t
To get FOB Odessa prices, about 15 $/t must be added.
