European market
The markets continue to display firmness in the absence of obvious bearish elements on short term. In addition to the fundamentals, the geopolitical situation with tensions not only with Belarus, but also with Russia, which is concentrating troops near the borders of Ukraine, is adding to tensions. The strength of the dollar is also an element of competitiveness for European origins, even if the evolution of prices in Argentina must be followed closely. Despite a significant progression in prices last week, Argentine remains a competitor for France on the North African market.
On the international scene, the US sold nearly 257,000 t of soybeans to undisclosed destination while Iraq is buying 500,000 t of wheat. Algeria is launching a wheat tender for three periods of shipments between 15 December and the end of January. The specifications concerning bug damage have been raised from 0.5% to 1%.
On Euronext, wheat prices could come back to test the psychological threshold of 300 €/t on the December expiry. Note that today the December options will expire. The corn progressed clearly due to harvesting delays and grain drying difficulties with the elevators.
FranceAgrimer reported that 83% of corn was harvested as of November 8. 87% of winter wheat was sown and 94% of winter barley.
Rapeseed continues to climb in the wake of canola, which has set new records.
The dollar remains firm at 1.1460 against the euro and 72.60 against the ruble.Oil is losing some ground at 80 usd/barrel in New York.
American market
On Friday, funds were net buyers in 12,500 lots of corn, 16,000 lots of soybeans and 3,500 lots of wheat.
Corn export sales on Friday amounted to 1.067 Mt, within the range of expectations. This cereal benefits from the support of the ethanol industry with an increase in prices and improved margins to meet a growing demand.
Soybeans also benefited from a substantial increase in meal prices in a context of higher demand. Soybeans are competitive in the animal food sector, particularly iagainst an expensive corn. At 1.289 Mt, soybeans export sales were within the range of expectations.
Black Sea market
Winter is arriving in the Black Sea basin with a drop in temperatures expected this week. This could disrupt the latest sowings already affected by the autumn's water deficit.
Cereals' prices are rising in the Black Sea region amid possible restrictive export measures from Russia, like the soon implementation of quotas.
Corn prices are also increasing in Ukraine, particularly on distant deliveries.
