European market
After Monday's sharp rise in all Euronext products, yesterday's trading session ended lower for many maturities. The euro's rebound against the dollar prompted a few adjustments, as did some position-taking following the upward movement.
The weather conditions expected between now and the end of the week are obviously being closely scrutinised, given the low temperatures recorded on the plains from Poland to France. New crop production potential remains important to monitor, especially as the wheat production in Ukraine is also expected to be lower than last year. On the other hand, the needs of importing countries still appear to be substantial. The USDA's representative in Egypt expects wheat imports to rise by around 2% to 11.2mn t for the 2024-25 marketing year. In terms of prices, exporters are following the current trend in prices from Russia.
Corn prices also ran out of steam at the end of the day after hitting a new session high for over 4 months. The June 2024 contract traded as high as €209.50/t, the highest of the day on Euronext. With regard to corn imports into Europe, the European Parliament voted to extend exemptions from customs duties for Ukrainian corn, as for all agricultural products. However, a mechanism for reintroducing taxes, based on the quantities actually imported, will come into force from June 6, with a reference volume that now includes a longer reference period, incorporating the second half of 2021 in addition to the references for 2022 and 2023.
Rapeseed prices also hit a new high for several months during the day, before finally easing off at the end of the day.
American market
Buoyed by the USDA's crop condition revisions, the price of wheat in Chicago rose again yesterday. The May 2024 contract returned to its highest settlement level for over 2 months at $5.85/bu. Funds continued to drive the upward momentum in the USA, especially as the dollar fell back slightly against other currencies, including the euro. Prices for the 2024 harvest were also on the rebound. The December 2024 contract returned to its highest level since early February, rising by around +8% in 3 consecutive sessions. In Kansas, the impact of the dry conditions of recent months remains to be seen.
Supported by the firmness of wheat, corn has also risen, albeit to a lesser extent. As a result, the May 2024 nearby contract is back above $4.40/bu. For new crop, the progress of sowing remains to be monitored, although for the time being no delays or major difficulties have been reported.
Soybean prices have also risen. However, the upward momentum is less strong than in grains, with prices returning to levels similar to last week.
Black Sea market
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