European market

Trend reversal on cereals yesterday with a sharp rebound in prices. The oilseeds could be also concerned by this better orientation today.

The Chinese demand is boosting the US markets, which is having a positive influence on the European markets. However, a poor export activity, especially in France, is not supporting the move. China has confirmed its tariff-reduced import quotas at the same level as last year, i.e. 9,636 Mt of wheat and 7,2 Mt of corn.

The persisting hydric deficit in Europe and Black Sea is still raising concerns for autumn plantings, especially for early regions as Ukraine or Russia.

On the international stage, 260 000 t of US soybean have been sold to China yesterday. USA sold also 360 500 t of soybean to undisclosed destination. On its side, Japan bought 104 870 t of US, Canadian or Australian wheat.

In oilseeds, canola, soybean and palm prices increased yesterday. The rapeseed experienced profit takings after the surge seen at the beginning of the week and stayed away from this trend. This morning prices are again progressing on the whole vegetable oils complex.

The euro is rebounding this morning to 1.1850 against the US dollar and oil is dealing above 40 US dollars/barrel at 41.10 in New York.

American market

Sharp rebound in prices in Chicago last night. The soybean is the main driver of this upward trend. On this product, a buoyant export activity to China is explaining the move, but the bullish trend of other products (wheat, corn) is less easy to justify. Indeed, China has not increased its reduced-tariffs import quotas for the current season. In addition, US wheat exports for this week were at the low end of traders' expectations, at only 336,000 t.

In corn, export sales were inside the expectations’ range at 1.609 Mt and the figure in soybean is still showing the current high momentum of sales at 2.457 Mt.

Yesterday, funds were net buyers in 12 500 lots of corn, 15 500 lots of soybean and 12 000 lots of wheat.

Donald Trump announced yesterday an exceptional $13 billion aid package for the US farmers to compensate for the Covid-19 crisis. This exceptional aid will be directed more specifically towards producers of raw and processed dairy products.

Black Sea market

The upward movement observed in grain and oilseed prices in the Black Sea region continues. During yesterday's day, this rise was concerning all products, all of which posted a new high since the beginning of the campaign!

For example, Odessa CPT wheat was trading at USD 215/t for the 11.5%, the corn at USD 177/t and the barley at USD 182/t.

Sunflower seed is dealing, factory-delivered, at USD 515/t (20% VAT included), while soybean is trading over USD 400/t, port-delivered.