Grain prices were back in the green Tuesday on Chicago, with corn led the way, moved nearly 2% higher on export optimism and waning US and global supplies.
Also wheat contracts rose, with gains more than 1%.
While soybeans was up of around 0.5%.
Energy prices trended moderately higher with crude oil rose more than 1%, while gasoline and diesel each gained about 0.5%.
Ramadan began last night with much of the Middle East going into temporary shutdown mode for the holiday which will end on 12 May.
Investors has been skittish about a halt to the Johnson & Johnson coronavirus vaccine.
Macro markets are not happy to see yet another vaccine shelved, at least temporarily.
Cases, continue to spike in India with new highs being reached in daily confirmed figures and now, Indian totals are overtaking those in Brazil.
However, there was some optimistic reaction, about lower-than-expected inflation rates seen in March.
Consequently, on Wall St., the Dow eased 68 points lower to 33,677, while the S&P 500 hit new record levels and the Nasdaq trended 1% higher.
The U.S. Dollar, meantime, softened moderately.
Going back on grains market, wheat prices earned a moderate bounce higher, partly spurred by dry conditions across the U.S. Plains and a flurry of overseas sales so far this week.
A weaker U.S. Dollar contributed some additional tailwinds.
In the agency’s latest crop progress report, USDA showed spring wheat planting progress off to a better-than-expected start, with 11% planted through April 11 and jumping well above the prior week’s tally of 3%.
That was three points ahead of the average trade guess of 8% and nearly double the five-year average of 6%.
For winter wheat, crop quality held mostly steady this past week, with 53% in good-to-excellent condition through Sunday.
Another 30% is rated fair (down a point from last week), with the remaining 17% rated poor or very poor (up a point from last week). Physiologically, 5% of the crop is now headed, up from 4% a week ago and down from the prior five-year average of 7%.
Corn prices moved, on a round of technical and bargain buying, partly spurred by dwindling US and world supplies, partially, because traders were also focused on the slower-than-expected planting ritms, as showed by USDA.
Across the top 18 production US states, indeed, only 4% of the corn crop was in the ground through Sunday.
Analyst expectations, were on an average trade guess of 6%.
However, we must note that planting has started off slightly quicker than the prior five-year average of 3%.
Meantime, Brazil corn-based ethanol production there has jumped 58% this past year, and analysts expect to see another 25% increase this coming season.
Corn-based ethanol currently comprises around 9% of Brazil’s total ethanol production.
Soybean prices found moderate gains in a somewhat choppy session.
Chinese soybean imports surged year-over-year in March, nearly doubling year-ago volume by reaching 7.8 Mt, last month, from just 4.3 Mt past year.
The United States and Brazil continue to be by far the top two suppliers of the oilseed.
USDA didn’t show soybean’s plantings area data in the two past report.
On european market, we have seen a very clear rebound in wheat prices.
The development of a dry climate in many American production areas and in Western Europe does indeed pose a significant risk to winter and spring crops.
Meantime, France’s farm ministry expects 2021 all-wheat hectars to improve 15% from a year ago.
Agreste, in deed, confirmed the increase in French soft wheat surfaces this year, to 4.9 Mha, against 4.3 Mha last year.
France is Europe’s No. 1 wheat producer.
Spring barley areas are only 524,000 ha, down 34% compared to last year.
Rapeseed rotations have been revised downwards, to 990 kha, ie the lowest areas recorded in France since 1997!
In add, its difficult for rapeseed to measure the consequences of bad wheater, in a context where the health status of this crop was already considered very worrying.
So, rapeseed prices started to rise again also in the wake of other vegetable oils.
The oilseed complex was also supported by the technical rebound of the Malaysian palm on the Kuala Lumpur Stock Exchange.
From Black Sea basin, yesterday, there was a phone call between Mr. Putin and the American president.
Biden invited him to a potential summit between the two powers in the coming months on neutral ground.
The two leaders discussed the military build-up of Russia and the lingering tensions with Ukraine.
However, Biden underscored the United States’ unwavering commitment to Ukraine’s sovereignty and territorial integrity amid growing tensions between that country and Russia.
Meantime, the ruble strengthened from 77.5 to 75.8 this morning.
Aussie local market still quiet, with the same ongoing focus on logistics amid rumours of train delays in southern NSW.
BOM forecasts still dry as we move towards Anzac Day.
On the international trade scenario, Japan is looking to purchase 3.3 million bushels of food-quality wheat from the United States in Canada in a regular tender that closes later this week.
Of the total, 70% is expected to be sourced from the U.S.
A South Korean feedmill group purchased 66,000 t of animal feed wheat from optional origins in a tender that closed earlier today.
The grain is for arrival in late October.
South Korea purchased 65,000 t of corn from optional origins in a private deal this week.
The grain is for arrival in July.
Algeria’s OAIC has issued an international tender to purchase a nominal 50,000 tonnes of durum wheat,
Tender closes today, April 14, 2021.
