The markets are losing ground on all products, testing, in particular, major support in wheat at 192 €/t on the March 2020 Euronext contract. Egypt is taking advantage of this downturn to launch a new tender. It should be noted that the French origin seems competitive, but that the difficulties in the ports could influence the decisions.
The markets have difficulties in analyzing the consequences of the coronavirus on world economic growth and encourage caution. In this context, crude oil prices are clearly losing ground.
The Black Sea basin is expected to benefit from the much-awaited rains in the coming days, and the state of the crops is currently being closely monitored by Agritel Kyiv's teams on field trips.
Palm oil prices evolve with ups and downs, giving ground again this morning, in a context of falling demand against the backdrop of the geopolitical crisis with India and the health crisis in China.
The Russian Ministry of Agriculture confirms that it wants to set an export quota each year, which does not seem surprising in a context of control of export activity desired by the government, notably through the increasingly strong influence of the VTB bank.
On the international scene, apart from Egypt's call for tenders, we note the purchase by South Korea of 133 000 t of corn from undisclosed origins.
Nearly 250 participants are expected tonight and tomorrow in Paris for Paris Grain Day, with all continents represented.
A continued decline in prices was registered yesterday in Chicago, particularly in wheat, in a context where Chinese purchases, already low despite the January 15 agreement, could be lower than expected due to the coronavirus crisis.
The funds which were long in wheat, liquidate positions in a context also of promising harvest for the moment on the Black Sea basin.
Funds were net sellers yesterday for 7,000 lots of corn, 4,000 lots of soybeans and 5,000 lots of wheat.
Ethanol production was down this week, with weekly stocks rising and margins falling for producers.
Black Sea market
Thick fog now covers a significant territory of the Black Sea winter crop regions. This episode is a sign of the return of a large depression over the Black Sea, promising the much-awaited precipitation for producers.
Thus, over the next 15 days, an average of 40 mm of rain (lack of snow due to temperatures) could be recorded, not enough to fill the reserves, but enough to delay a possible weather market premium related to the Black Sea. It should be noted that in the space of 6 months, the water deficit compared to normal amounts to 80 mm.
It should be noted, however, that Romania should receive much less cumulative rainfall than its Ukrainian or Russian neighbors.