European market
The much commented coming of the US president at the Davos economic forum yesterday in Switzerland has somewhat relieved the financial markets. Donald Trump has tempered his speech and his intentions around Greenland by dismissing the threat of rising US customs duties on EU products and by rejecting the use of force.
The US stock market, much followed and evoked by D. Trump, was able to rebound yesterday after its heavy fall at the beginning of the week. The mistrust of investors towards the dollar has eased allowing the euro/dollar to return below 1.1700.
This decline in the European currency came to support the European grain prices pressured the day before. However, wheat on Euronext failed to maintain its gains of the day and is just finishing balanced in a very challenging context for exports. The supposed massive presence of Argentine wheat on the last tender from Algeria handicaps the prospects for the export of the European Union.
Only corn is still showing a little progress on the close and retains its premium on wheat in a tight context of imports pace in the EU27.
As the day before, rapeseed continues to go up alone with a new increase on Euronext. It is driven by a short-term price increase context for all oilseeds. From palm in Kuala Lumpur to soybeans in Chicago via canola in Winnigpeg, each product benefits from a renewed enthusiasm.
American market
Donald Trump's more temperate speech at Davos towards the Europeans contributed yesterday to the rise of the dollar. In this context, US grain prices have adjusted downward in Chicago. Nevertheless, support remains present. In fact, the arrival for this weekend of a polar cold wave on the Great Plains is gradually starting to worry. In corn, the dynamism of US exports reassures while the strong heats continue to animate the discussions in Argentina.
The USDA also announced yesterday new and strong exceptional sales of US corn for 150,000 t to Colombia and 195,000 t to unknown destinations.
While the funds were on sale on wheat and corn on Chicago yesterday, they continued to buy soybean seed and oil. These products such as the global oilseed complex are in an upward dynamic this week. The soybean market is also supported by a delayed harvest in Brazil because of rains in the north of the country. The operators continue to welcome the optimistic speech of Scott Bessent, the US Treasury Secretary, about the trade deal with China and the soybean purchases in the context of this agreement.
Black Sea market
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