The Weather Market is boosting spring crops prices. Corn and soybean are resuming their upward trend in Chicago pulling all the markets in their wake for the 2021 harvest.
The best performance was for rapeseed, still in a context of poor harvest prospects for the next campaign and very stretched balances. Canada, for example, will be importing rapeseed from Ukraine in August, an unprecedented development for this major exporting country.
From a weather point of view, there are three main areas of interest: the American continent, with a new cold spell delaying sowing in the United States, a water shortage in Brazil for corn crops and, finally, fears of a hydric shortage in Europe, and more particularly in France, for the weeks to come.
On Euronext, wheat prices for the May expiry are falling back, but the 2021 crop deliveries were firmer. Traders reported the arrival of a 45,000t wheat cargo from Romania in Dunkirk.
EU rapeseed imports stand at 5.36 Mt compared to 5.13 Mt last year to date. Crushing activity in the EU remains strong, despite the high seed prices. Vegetable oil prices continue to rise.
The dollar is down this morning at 1.2060 against the euro and 76.20 against the rouble. Oil is firm at 64.00 $/barrel.
Prices rose sharply yesterday in Chicago, mainly in soybean and corn, against the backdrop of a cold snap expected in the US over the next few days, which will delay spring planting.
As of last Sunday, 8% of the corn acreage was estimated to be planted, compared to 4% last week. This is in line with the average of the last 5 years. In soybean, 3% of the area is planted, which is in line with the average for now. Spring wheat is 19% sown compared to 12% on average at this period. So far, there are no delays, but concerns about the upcoming days.
This week's export inspections stand at 183,986 t for soybean and 1,524,777 t for corn, within the range of expectations. Wheat inspections were above consensus at 613,595 t.
Yesterday, funds were net buyers for 12,500 lots of corn and 7,500 lots of soybeans. They were almost neutral on wheat.
Black Sea market
The world's largest producer and exporter of sunflower oil, Ukraine, will limit its exports until the end of the current season. Yesterday, the Ministry of Economy and Ukroliyaprom, the association of crushers, agreed on a maximum export volume of sunflower oil for the 2020/21 MY of 5.38 Mt compared to 6.9 Mt last season. In the first 7 months of the season, Ukraine has already exported 3.5 Mt, i.e. 2/3 of the maximum volume.