European market

No major changes at the end of the week, operators did not wish to remain in position before the weekend, amid high uncertainty on the markets driven by both fundamentals and geopolitics.

In France, concerns are growing about the current weather conditions. An unprecedented water deficit  is having a major impact on corn crops and fodder production for farmers. The French Ministry of Agriculture has revised its wheat production estimate upwards to 33.9 million tonnes from 35.4 million tonnes last year. Durum wheat production is estimated at 1.36 million tonnes compared to 1.58 million in 2021. Barley production is forecast at 11.4 million tonnes, the same level as last year. The most spectacular decline is in maize, with production now estimated at 12.7 million tonnes compared with 15.53 million tonnes last year. Given the persistent water deficit, French production could even fall below 12 million tonnes, according to Agritel analysts.

On the international scene, the US sold 132,000 t of soybeans to China and 132,000 t to an undisclosed destination. South Korea bought 120,000t of feed wheat, probably sourced from Australia. China's soybean imports are down in July 2022, at 7.88 million tonnes versus 8.67 million last year.

Ukrainian exports dominate the news, with the first ship loaded last week with just over 26,000 t of corn, initially destined for Lebanon, but which may end up going to Syria. Four ships left Ukrainian ports yesterday, transporting 110,000 t of corn, 45,000 t of oil cake and 6,000 t of sunflower oil. If the corridor seems to be respected for now, the logistical challenge remains huge to clear the port silos from the 2021 crop to leave room to the 2022 harvest currently underway.

Rapeseed prices are benefiting from the rebound in palm, which is still up over 4% this morning in Kuala Lumpur.

The dollar is little changed at 1.0160 against the euro and 60.60 against the rouble. Crude oil is dealing at 89.40 usd/barrel in New York.

American market

Wheat prices fell on Friday in Chicago amid a resumption of Ukrainian exports and a record harvest expected in Russia.

Soybean was down slightly as some rain was expected over the weekend.

Corn was up slightly thanks to funds. It should be noted that China seems to be trying to facilitate imports of corn from Brazil. Read more.

Geopolitical tensions with China are limiting the potential for price increases for the time being.  

On Friday, funds were net buyers in 3,000 lots of corn but net sellers in 3,500 lots of soybean and 2,500 lots of wheat.

Black Sea market

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