European market

Last week was marked by a prices' decline in all agricultural commodities. This downturn is essentially due to the so-called technical correction, after the rise of  last few months. In France, the current storms are welcome, but do not prevent the risk of a drop in production, due to heterogeneity. Prices will be influenced mainly by the situation in Ukraine, where about 20 Mt of grains are blocked and cannot be supplied to the world market.

On the international scene, Jordan is officially buying 120,000 t of feed barley.

According to its agriculture minister, Ukraine could sow 190,000 ha of spring wheat, 900,000 ha of spring barley and 3.9 M ha of corn this year. This would represent about 25% less spring area than last year.

Given the persistent water deficit in France, FranceAgrimer said that only 73% of winter wheat was rated as good to excellent, compared to 82% the previous week and 89% a fortnight ago. In winter barley, the crop rating is also down to 71% and in spring barley to 69%, down respectively by -8 and -7% compared to last week. Corn sowing is now complete.

Rapeseed prices recovered a little on Friday after the decline of the previous days, in the wake of canola and palm this morning.

The dollar is weakening this morning at 1.0600 against the euro. Oil remains firm at 110.90 usd/barrel.

American market

Wheat prices fell sharply in Chicago over the past few days as beneficial rains returned to major HRW producing regions. India is relaxing its export restrictions. However, the situation remains unclear as to what volume will ultimately be granted for export. Traders will be watching the crop rating to be published this evening, which should not change much with 27% of the area deemed to be good as of last week.

US corn prices were little changed, with a partial catching up of the delay in sowing thanks to drier weather in recent weeks. In this context, the planted area could at least be equal to or higher than the latest USDA estimate of 89.5 million acres.

 Soybean prices have been supported by strong export volumes, suggesting a downward revision in carryover stocks.  

On Friday, funds were net sellers in 10,500 lots of wheat and 5,500 lots of corn. They were net buyers in 4,000 lots of soybean.

Black Sea market

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