European market

Consolidation session was registered yesterday on the markets, mainly on chartist considerations. Indeed on many products, the market came yesterday to test resistance levels, motivating some profit-taking, after recent increases. However, the weather forecast for the coming days indicates significant precipitation on the Corn Belt. Still, the program of aid envisaged by the US administration to the farmers could encourage the producers to orient their sowings.

The Coceral revises upward its estimate of European production in soft wheat to 140.3 Mt against 139.8 Mt published last month. This is a clear progression compared to last year posted by the Coceral at 127.4 Mt. The agency estimated a European barley production at 59 Mt compared to 59.4 Mt last month, including 28.7 Mt of spring barley. The corn production is estimated at 62.9 Mt against 61 Mt in March. In colza finally the production is estimated at 17.9 Mt against 18.5 Mt estimated last month.

On the international stage, Ethiopia bought 600 000 t of wheat from the optional origins, while Taiwan bought 111 050 t of wheat from the USA.

Rapeseed prices rose slightly yesterday, despite a decline in palm, canola, and soybeans.

The euro remains on a relatively low level against the dollar, at 1.1150 allowing better competitiveness of European origins on the international scene.

American market

The market was flat in wheat yesterday in Chicago, with profit-taking in a context where the abundant rains that persist even in the South of the country, were initially considered as beneficial, but now they raise fears of a qualitative deterioration.

The corn prices are still oriented on the rise, especially since planting delays could increase next week, given the expected weather forecast.

Soybean prices, meanwhile, were falling back, following rumors from Bloomberg, that the US administration could unlock 2 $/bushel assistance to producers on this product, to offset the negative impact of the trade war with China.

The funds yesterday were net buyers for 37,000 lots of corn and for 1,000 lots of wheat. They were net sellers for 8,000 lots of soybean.

Black Sea market

In Ukraine, favorable climatic conditions for field work have settled in recent days. Farmers have almost caught up on planting compared to last year. Thus, as of May 21, 94% of corn area was sown, or 4.366 Mha against 4.373 Mha in 2018. Sunflower seedlings progressed by 92% compared to 98% last year to date, or 5.233 Mha against 5.225 Mha in 2018. In the coming days, meteorologists generally expect favorable weather, with however slight rainfall in places.