European market
Recent speeches from both heads of the ECB and the Fed managed to strengthen the Eurodollar and this move is gaining momentum this morning as the parity is now above 1.14, level unseen for more than one year. Predictions from IMF about a lower growth in USA are globally weighing on the dollar.
Due to adjustment effect, cereals prices are losing some ground. The progression of harvests and collect of the first volumes of the 2017 season are not penalizing too much French market as ending stocks of wheat and barley will be in the bottom range of last five years. Wheat prices on Euronext were losing -1 €/t compared to the previous session on the September delivery and are getting closer to CME’s levels of 168.25 €/t.
In oilseeds, the market is stabilizing under the level of 360 €/t on the August delivery of Euronext. Traders will pay special attention to today’s figures from Statscan about actual 2017 acreage of canola following tough planting conditions. In Europe, the crushing activity is penalized by lower margins. In such context, some industrials are revising their strategy like Avril who announced a reduction of -25% of the activity in its plant of Le Meriot where the annual rapeseed crushing exceeds 1 Mt.
American market
Wheat prices in Minneapolis, which are representing a Hard Red Spring Wheat grade, are now above the 7 $/bu level on the closest expiry, still because of harvest prospect fears. This firmness also benefits the other American wheats, but the movement is not as high as it is for the Minneapolis wheat. Wheat prices in Chicago are progressively eroding the decline of last week.
The recent rains on the Corn Belt offer an element of stabilization for corn prices, close to the lowest point for more than 6 months. On the current level, operators remain attentive to the publication of the USDA on Friday which will focus on acreage and stocks in the United States. Meteorological forecasts are currently favorable for corn crops with expected new rainfall and seasonal temperatures in the coming days.
Prices for soybeans are up slightly, almost at the same level as last week, supported by the repositioning of the funds in purchasing, before the publication of weekly figures for exports sales today. Some adjustment operations are also carried out before tomorrow&39;s publication of the USDA on acreages and stocks in USA.
Black Sea market
After the Ukrainian public holiday yesterday, negotiations for forward sales will resume. Indeed, producers will increase the sales if the cash market is not too much impacted by the recent fall observed on Euronext and Chicago. Nevertheless, traders should revise their prices a bit lower.
Tuesday, CPT prices offers for harvest 17 were as follow:
Wheat 11,5%: 161$/t
Feed wheat: 152$/t
Feed barley: 144$/t
Corn : 148$/t
Rapeseed : 390$/t
Soybean : 340$/t
