European market

The decline in oil prices, after Monday’s highs, is directly easing prices across other commodities. Agricultural commodities on Euronext, which had shown, although to very different degrees, a rebound momentum since last week, recorded a decline yesterday.

In parallel, the euro/dollar exchange rate is once again trading above 1.16. This situation is causing strong price adjustments, with cereal prices on Euronext falling by around 5 €/t compared with the previous day on the nearby maturities. In this highly volatile context, the OAIC finally purchased wheat yesterday under the tender launched at the beginning of the week, with optional origin.

As part of its adjustments to global cereal balance sheets, the USDA has revised the European Union’s export potential downward by 1 Mt, now at 30.5 Mt. This reduction in export outlets is nevertheless offset by the renewed strength of feed demand, allowing European stocks to remain at a level almost unchanged from the February outlook, now at 15.67 Mt, an increase of 34.3 % compared with the previous season.

In oilseeds, rapeseed prices are also declining, reflecting the downward adjustment in rapeseed oil prices observed yesterday. Canadian canola prices, after a high reached the previous day, also fell yesterday in Winnipeg, as did palm oil in Kuala Lumpur. The latter, after a strong rebound on Monday, experienced a sharp downward correction, thereby technically filling the recently opened gap.