European market

European corn reached a new contract high on Euronext yesterday. It is enough to look at the evolution of the prices to deduce the weather for the next few days. Because of the lack of announced rains, the crop conditions are not intended to improve, enough to undermine the potential.
The recent hot weather is also weighing on winter grain yields potential. While the barley harvest is progressing rapidly, disappointment is common in the plains, with kernel's results below the standards. Producers are waiting for confirmations in wheat, while doubt persists about the impact of the weather in recent weeks. Depending on the regions and the stages, heterogeneity should, once again, be in order.
On the international scene, eyes are also turning to Russia, where the excellent potential leaves room for doubts. A rainy weather is raising concerns among local operators. At the same time, the problems of access to fuel are not trivial and force producers to adapt as far as possible.
If the period is favourable for the weather market, the macroeconomics remains a factor under surveillance. While crude oil remains under pressure following the recent declarations between Iran and the United States, it is now the euro/dollar parity that focuses attention. Indeed, the pair is back below the symbolic level of 1.14, offering a boost in competitiveness to French origins in search of new outlets.

Black Sea market

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