European market

A sharp increase was seen in the start of the week yesterday for grains on both sides of the Atlantic in the context of the weather market. Corn is, as for the last 3 weeks, the leader of the increase in Europe. Corn November contract on Euronext  closed up by +€8.5/t approaching €240/t level. The market continues to react to the fall in corn crop conditions in France of -18 points over the last week to 58% for good to excellent according to the Cereobs report published last Friday. The fall should worsen in the coming weeks given the third heat wave in France in just 6 weeks. Temperatures close to 40°C or even more in some places arrive when a majority of corn has now reached the critical stage of flowering.
Wheat prices managed to partly offset the Black Sea prices pressure and the harvest pressure and recover thanks to support from corn. While the demand from the major importing countries of North Africa and the Middle East has been sluggish in recent weeks, the wheat market welcomes the purchase of 660,000 t of wheat made yesterday by Saudi Arabia.
Rapeseed prices are also up in connection with the concerns that weigh on French sunflower production, which is also exposed to the heat wave, but also out of sympathy with a sudden rise in soybeans in Chicago. Canadian canola is also making progress in Winnipeg, this time with fears related to excess rainfall.

American market

The US market opened after the long Independence Day weekend with high volatility. Weather market and rumours of Chinese purchases yesterday pushed funds back to purchases and supported all products prices on Chicago.
The rumors of US soybean purchases by China for this autumn seem much stronger than those of a buying interest in American corn. The corn has also progressed supported by expected warmer weather on the west of the Corn Belt.
However, the crop conditions for US corn are still estimated at 67% for "good to excellent" according to the USDA, as last week and compared to 64% on 5 years average.
Soybeans lose 1 point over the week to 64% for "good to excellent" which remains higher than the 61% on 5 years average.
Spring wheat condition is down by 2 points over the week to 57% for good to excellent, which remains significantly higher than the 51% on 5 years average.

Black Sea market

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