European market

Rise of all products yesterday after the jump recorded in Chicago due to new rains expected in the Corn Belt that could disrupt a bit more the corn and soybean plantings. This is contrasting with the promising crop expected in Europe.

The euro is retreating slightly against dollar and is dealing around 1.1270 to start the day. The crude oil is recovering to 52.5 $/b on the WTI following the tensions in Oman Gulf.

On the international market, Mexico bought 175 000 t of corn sourced from USA and Japan bought 37 293 t of wheat sourced from Canada.

Rapeseed prices are finding some support from a steady canola in Winnipeg due to a slight hydric deficit in the country. Moreover, the rebound of crude oil and palm oil are underpinning the veg oils complex.

Indonesian authorities are currently testing the B30. In case of positive results, this country could incorporate up to 30% of palm oil in the local diesel.

Corn prices are dealing slightly up on Euronext. The rise is capped by Ukrainian imports and by favorable climatic conditions for the future crop in France. In Ukraine the next harvest is expected lower than last year but should remain abundant around 32.6 Mt according Proagro.go.

American market

Sharp progression of prices in Chicago yesterday as climatic conditions remain adverse. Fears are growing to see, after the corn, the soybean plantings also disrupted by the too wet weather. Another risk is to see an early winter that would hamper crops planted lately to reach a proper ripening stage. With these issues, fears and uncertainties should last during weeks and maintain a high level of volatility in the market.

Corn prices in Chicago have now progressed by +7% this week, those of soybean by +4% and those of wheat by + 6%.

Mexico should remain a top buyer of US wheat (around 4 Mt) despite of recent tensions between the two countries.

Yesterday, funds were net buyers in 38 00 lots of corn, 10 000 lots of soybean and 8 000 lots of wheat.

Black Sea market

In Russia, preliminary results of grain exports in 2018/19 have been summed up. 
According to the Federal State Budgetary Institution Federal Center for Quality and Safety of Grain and Grain Products, based on phytosanitary permits, the export of grain from Russia from July 1, 2018 to June 11, 2019 amounted to 49.4 million tons of grain and by-products (- 16% on the same date last year). Shipments of wheat decreased to 34.8 million tons (-13% year-on-year). Barley exports fell to 4.5 million tons (-22%). Corn exports fell 53% to 2.6 million tons.
The Top-3 importers of russian grains are Egypt, Turkey and Iran. Egypt imported 7.4 million tons of grains (mainly wheat), Turkey also bought 7.4 million tons of grains (including 5 million tons of wheat), imports of grain from Iran amounted to 2.5 million tons (including 1.6 million tons of corn).