Crude oil bounced, making up almost all of yesterday’s losses.
The blockage of the Suez canal interfering with transit and delaying arrival of vessels from the middle east to Europe justifying the rally.
Grains and oilseeds are still in limbo ahead of next week’s planting report.
Old crop corn prices inched up on continued planting delays in Brazil, which would likely favor U.S. export volumes in the coming months.
But new crop prices stumbled slightly as markets brace for an acreage expansion in 2021.
Ethanol production dipped last week, the first decline in weekly output over the past four weeks.
Plenty in the market are looking for a reason to see a continued upward step in prices, and last week’s Chinese corn business did help, but there are no crystal balls for the acreage report.
New data released by the U.S. Energy Information Administration this morning reported 38.7 million gallons/day of production for the week ending March 19, down 5% from the previous week.
Stocks were up, rising for the first time in a month after the export driven drawdowns.
Inventories, indeed, are up to 21.8 million barrels from 21.3 last week.
Tonight’s weekly export sales reports in the US will be for the week ending 18 March and those should include all of last week’s Chinese flashes.
Soybean prices rose across the board in yesterday’s trading session as bullish soyoil demand propped up the day’s gains for all the soy complex.
Stalling soybean oil production in China has been a key contributor to rising soyoil prices in recent days, as global edible oil prices approach a peak.
Slowed Brazilian soybean shipments due to harvest delays have limited available soybean supplies to crush facilities in China, with many smaller plants idling until more affordable – and available – soybean stocks are imported.
While prices are expected to ease as Brazil’s soy shipping season picks up momentum, losses are likely to be limited as President Biden pushes a pro-biodiesel agenda forward and increases demand from the fuel sector.
Wheat prices fell over a percent in yesterday’s trading session as favorable weather forecasts across the Plains improved crop conditions and supply projections.
A rising dollar also contributed to the day’s losses.
On european market, we have seen a downturn in the wheat market on close deliveries in a context of lack of activity on the physical market in the short term while for harvest 2021, prices did not change, despite a sharp decline observed in the Black Sea basin.
In add, China is starting to become pickier about the quality of wheat it is buying from European Union wheat producing powerhouse, France.
China’s state-owned grain behemoth, COFCO International, indeed, told seminar participants organized by France Export Cereales (FEC) that looking to the future, China will likely require wheat containing higher protein amounts from France.
France’s soft wheat crop typically contains a lower protein content relative to other wheat varieties.
China bought nearly 92 million bushels of soft wheat from France in 2020 and is on track to buy 73.5 million acres of wheat from the European Union’s largest wheat producer in 2021.
Phytosanitary regulations could also limit future Chinese purchases of French wheat.
The climatic conditions remain ideal throughout the northern hemisphere and thus limit the risk premiums for the next harvest.
Also corn prices is losing ground in close delivery, with demand which is drying up, particularly in Europe.
Also the American corn plantings are getting off to an excellent start, bringing a little more pressure to the trend.
In Brazil, too, the climate has allowed work to speed up for more than a week now.
Rapeseed, on the contrary, always finds support in the firmness of the oils.
Prices progressed yesterday, particularly in the wake of canola, and with oil prices rebounding after their sharp decline at the start of the week.
Oil soared also after a stranded ship blocked shipping traffic in the Suez Canal.
Russian wheat loadings during the month of March not exceed 1.2 Mt, which mean a -60% decline in activity compared to March 2020, while on barley and corn activity was relatively strong during the first fortnight with respectively nearly 700,000 and 800,000 tonnes loaded.
In deed, only between March 15 and 24, only 83,000 tonnes of barley and 25,000 tonnes of corn were shipped.
Aussie markets are seeing action, buyers chasing tonnes helping delivered wheat markets on the east coast rise A$2/t or so.
Execution and logistics remain the name of the game though, with domestic freight markets firming slightly further as farmer trucks start coming off the road in preparation for planting.
Internationally, South Korea bought 66,000 t of optional origin feed wheat.
Jordan, for its part, is buying feed barley.
