European market

The return of the euro against the dollar below 1.14 level gives back an attraction to European origins in a context where the economic sphere is attentive to the evolution of the British situation. It helps soft wheat to stabilize in a market waiting for new business.

On the other hand, barley prices are down sharply in line with the outlook for current export activity and the return of selling pressure.

In Euronext, figures stabilize on wheat and corn with prices for March 2019 contract respectively at 203 €/t and 180 €/t. In oilseeds, prices mark a phase of stabilization as the closing of the February contract approaches. Operators are now focusing on the next maturities where prices are firming up slightly above support levels.

American market

Wheat prices rebounded slightly yesterday in Chicago. The price decline of the previous day has led some operators to reposition themselves after a return of prices close to the lowest levels of early January.

The situation is similar in corn with a slight rise in prices after the fall observed at the beginning of the week. The downward movement in prices of American origins is pushing buyers to reposition themselves with reported sales including transactions with South Korea. The export pace to China is also to be followed. The promises of China to increase imports are to materialize.

The changing weather conditions in South America also support prices. In Brazil, dry weather is confirmed while in Argentina wet conditions persist.

Black Sea market

According to the ministry of agriculture in Ukraine, exports have reached 25.7 Mt of grains since the beginning of campaign. For wheat, the pace remains steady with already at 11.1 Mt loaded mostly to South-East Asia (Indonesia, Philippines, Bangladesh, Thaïland…). When focusing on barley, the volumes still available are now limited after a very dynamic first half of the campaign that saw the country exported 3.2 Mt to Saudi Arabia and China as well. To end with, corn exports reached 10.7 Mt mostly to European Union (Spain, the Netherlands, Germany) and China.

The Ukrainian corn is competitive in the international trade, allowing the country to gain market shares. The strength of the demand is underpinning a bullish trend on prices that touched their highest level since September, 4th 2018 at 163 $/t on CPT Odessa basis. For wheat, prices are now evolving at 219 $/t (CPT Odessa) above previous high recorded in August.