European market

The rains continue in France and raise concerns about the harvesting sites still to be carried out, both from a qualitative and quantitative point of view. In this context, wheat prices on Euronext, which are of milling wheat quality, remain on their highest levels, testing a resistance zone of 230 €/t. Different quotations are to be taken into account according to the qualities displayed, with different scales depending on whether it is the specific weight or the hagberg that is defective.

The supply in the 8 main exporting countries will be revised downwards in the next USDA report to take into account the poor yields observed on spring wheat in Russia and the situation also on spring wheat in the USA and Canada. In Argentina, while wheat planting is completed, there are already concerns about yield potential due to a water deficit.

On the international scene, Taiwan has purchased 55,000 t of corn from South Africa. Japan is buying just over 119,000 mt of milling wheat and Pakistan has launched a tender for 400,000 mt of milling wheat as well. Shipments are expected between September 15 and October 31.

As of August 1, the EU has exported 962,949 t of milling wheat this season, compared to 1.48 million t last year to date. Barley exports also started timidly at 785 644 t against 1.09 million last year.

On Euronext, the August corn deadline closes tomorrow and was posted last night on historical levels at 295 € / t.

Rapeseed continues to consolidate, thus disassociating itself a little from its rivals, soybeans and palm. In Canada, beneficial rains are also expected although late.

The dollar is little changed at 1.1874 against the euro and 72.93 against the ruble this morning. Oil is giving up some ground at 70.20 usd/barrel in New York.

American market

Soybean prices were down quite a bit yesterday amid favorable rains at the crucial flowering time and fears that the Biden administration will reconsider its biofuel policy in light of rising food prices.

Beyond all these considerations, the impact of a new covid wave also raises concerns about demand.

Wheat is stalling after the unexpected increase in crop rating this week on spring wheat, posted at 10% as good to excellent, a figure that remains extremely low.

Corn was losing some ground yesterday despite a 2-point drop in crop rating this week, against a backdrop of expected beneficial rains in the coming days.

Funds were net sellers yesterday on 9,000 lots of corn, 14,500 lots of soybeans and 3,000 lots of wheat.

Black Sea market

In the Black Sea basin, wheat prices are still increasing, especially following the progressive revision of yield estimates in Russia. Despite high prices, close to 260 usd/t fob for 11.5% protein, the demand for Black Sea origins is not weakening. It is also necessary to take into account the withholding of sales by Russian producers, unhappy with the taxes imposed on exports.