European market

EU wheat prices have managed to return to the key levelof €191.50/t on Euronext. Moving away from the €185/t level for wheat, however, does not mean the changes in the trend in place. The global supply remains ample to date to absorb demand. So, the current rise in prices could be explained by geopolitical events.
The rise in tensions on the international scene at the beginning of the year is particularly marked. After Donald Trump's coup in Venezuela, relations are heating up between the great powers, each with interests in this strategic country for crude oil. On the front line, Russians and Chinese remain vigilant about the final outcome for Venezuela, while local companies hold assets and stocks of crude oil in the country. WTI remains for the moment below the level of $60/barrel.
This beginning of the year is also marked by the repositioning of financial operators on certain markets. Portfolio adjustments during this period are frequent and regularly lead to market movements that are not in line with short-term fundamentals.
After two sessions of marked rebound, the rapeseed was again down. Beyond the events in Ukraine concerning the sunflower crushing plants, the markets welcomed at the beginning of the week the optimism around the Sino-Canadian relations. The visit of the Canadian Prime Minister to China, from January 13 to 17, feeds the hopes of operators for a reopening of the flows of canola, its oil or meal to China.

American market

US prices were up during yesterday's session, in a hectic geopolitical environment. The risk premium is back and catalyzes operators, who are struggling to sell in the current context.
The next few days will be decisive, with the monthly reports of the USDA and the CONAB published next week. EThe production levels of corn and soybeans, both in South America and in the United States will be closely watched. More pessimistic than the US office on corn yield, local operators expect a decrease in supply, but demand also considered record.
The decline in the crop conditions in some areas in the US for wheat is also worth watching.

Black Sea market

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