European market

With weather conditions currently varying widely from one production basin to another, many questions are being asked about the development of winter crops. The cold snap currently affecting several European countries remains important to monitor, as does the situation in southern Russia, where rainfall is still limited.
Given the risks involved, prices for both old and new crops rebounded sharply yesterday. By rising back above €215/t, the price of May 2024 on Euronext returned to the level seen at the end of January. The range of variation recorded yesterday was very wide, recalling the movements of last summer. The same movement was also clearly visible on the following maturities, pushing up prices for the 2024 harvest.
Corn prices also followed the upward trend, reaching 4-month highs for the 2023 crop. Prices for the 2024 harvest are also rising on both the futures market and the physical market, where reported activity is nevertheless limited.
For oilseeds, the same fears about crops are also driving prices higher, offsetting last week's fall. The European Union's MARS new crop yield estimate, released yesterday, stands at 3.26 t/ha for rapeseed, still raising questions so far from the harvest.

American market

The resumption of trading at the start of the week was marked by a rebound in prices for all commodities in Chicago.
Grain prices rose sharply, continuing the rebound of last weekend. SRW wheat returned to its highest levels since early March. By climbing back above $6/bu, the price of the September 2024 contract is back where it has been since mid-February. Weather fears in the northern hemisphere - Russia, Europe and the USA - are prompting buyers to reposition their positions, with funds in particular very active yesterday. The forecast deterioration in growing conditions is also supporting US wheat prices. Yesterday, the USDA announced that winter wheat crops had deteriorated by 5 points compared with the previous week. 50% of the area is now rated as "good to excellent", which is below expectations. Only 15% of spring wheat has been sown, also a limited increase on the previous week.
In sympathy with the rise in wheat, corn prices also rose yesterday, though by less. Corn sowings are progressing at the expected rate, with 12% of the area now sown, the same level as last year.
Soybean plantings are also progressing in the USA. The pace is also on a par with last year, with 8% of acreage now sown. Alongside the rise in soybean prices, soybean oil, which has been on a steady downward trend for the past three weeks, is also showing a rebound, climbing back above $45/lb.

Black Sea market

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