European market

The first session of the week was dynamic, with prices trending upwards. All managed to get out of their support zone, like Euronext wheat September contract, which is back on its highs for about a month. Rapeseed was moving away from €500/t to return above the psychological zone of €510 /t on the August contract.
The main driver of the increase is corn, since by trading around €219/t on the November contract, this product registers a new contract high. The fears are rising among the operators, with hot weather persisting in France. The strong decline in areas in France and Eastern Europe is added to these potential losses, which naturally contributes to the firmness of prices.
At a time when the harvests are continuing in France, heterogeneity remains in order. Like the weather in recent months, the yields are disparate and the localized rains are reflected in the results.
On the international scene, crude oil was returning to its lows of the early evening, close to pre-conflict levels. It must be said that major progress has been made in the discussions between the Iranians and the Americans. The latter mention a definitive agreement within 60 days, enough to reassure operators.

American market

Chicago is not in the same position as its European counterpart, the CME prices are struggling to move away from their support areas. Thus, the corn CME September contract is still around $4.20/bu. The same is true for soybeans, which are still around $11.10/bushel.
The fragility of the prices is explained by the crop conditions considered, for the moment, correct. The USDA highlighted this yesterday by maintaining the share of corn and soybean crops judged good to excellent at 68% and 66% respectively.
The winter wheat harvest continues in the country, with 40% of the areas now harvested. The pace remains steady, with an increase of 15 points compared to last week. As for yields, the operators confirm degraded results, a consequence of a poor weather earlier.
In the medium term, everyone will have their eyes on the USDA quarterly report. The stocks, but above all the areas, will be updated there, which will bring more visibility on the crop arbitrations in the United States, in a context of soaring fertilizer prices.

Black Sea market

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