European market

Since the end of April, the European market has benefited from US better trend but also from the easing of the euro against the dollar. Winter crop conditions in the United States could provoke a return of prices above 175 € /t on Euronext for the December 2018 contract.

Corn prices also registered an increase while the sowing pace in France is still well below the level of last year at the same time. Weather conditions have been very heterogeneous during past weeks with wide range of temperatures. Nevertheless, conditions should improve this weekend, which should speed up plantings.

Regarding rapeseed, flowering remains irregular in France and prices are marking a slight rebound. The rise of crude oil does not provide sufficient support for this market, which continues to be penalized by low soybean and palm oil prices.

American market

Wheat and corn prices raliied in Chicago. On the front contract May 2018,  prices have recorded a new high since last August.

Climatic conditions are remaining dry and weather models are not easing concerns as  little rains are awaited.

Regarding these conditions, corn plantings are lagging compared to previous years, supporting the market on the 2017 and 2018 crop.

In Kansas, first HRW wheat counting’s are still ongoing and are currently suggesting a decrease in yields of more than10% compared to last year. Dry conditions are also observed in Australia making it difficult for farmer to sow wheat for the upcoming campaign. Funds continue their buying trades on wheat, reinforcing short covering initiated last week.

The soybean market is puzzled between soymeal prices dealing on new highs and lower oil prices.

Black Sea market

Weather conditions in Black Sea are still under watch. Indeed, a hot and dry weather is in place in Ukraine, Romania and south of Russia where major agricultural areas are located. Weather patterns are predicting persisting dry conditions for next fifteen days with temperatures above seasonal. This will for sure facilitate the growing development of the crops an could reduce the number of spikes per square meters. Conditions in June will be crucial for yield potential that could be under last year’s levels. European Agritel Tour teal will visit these regions at the beginning of June to anticipate harvests.