US exchanges were shut on Monday for Independence Day, and european markets fell sharply, meantime.
September milling wheat on Paris-based Euronext settled down 4.50 euros, or 2.2%, at 200.50 euros ($237.91) a tonne.
The front-month contract earlier fell to its lowest since mid-April at 199.50 euros as it tested the psychological 200 euro threshold.
The more active December contract settled 3.75 euros down at 203 euros after touching a 10-day low at 202 euros.
August corn contract fell only 0,50 euros to 238 €/ton, but November deadline tumbled by 4 euros to 200,50 €/ton.
In rapeseed, Euronext August futures settled down 14.75 euros, or 2.7%, at 521.75 euros a tonne, with forecasts of beneficial rain for Canadian canola encouraging Euronext to retreat from Friday’s three-week high.
On macro markets, Ministers of oil cartel OPEC and its allies called off output talks on Monday, without setting a new date and leaving oil prices to rally.
Meantime, Brent was up 1.2 percent, at $77.11 a barrel by 16:52 GMT, trading around more than two-year highs.
Saudi energy minister Prince Abdulaziz bin Salman on Sunday called for talks to secure a deal after two days of failed discussions last week.
But on Monday there had been no progress and talks were called off.
The failure to reach a decision on supply policy by Saudi Arabia, Russia and the UAE on Monday means the group could keep its existing cuts of 5.8 million bpd in place until April 2022, when the deal expires.
This could drive up Brent crude prices internationally.
Most Asian stocks gained on Monday, extending the rally that took global equities to a record high after a U.S. jobs report signalled the economic recovery remained intact but didn’t yet warrant any immediate withdrawal of Federal Reserve stimulus.
Japanese markets, however, bucked the trend, with the Nikkei falling 0.5% following a surge in COVID-19 infections in Tokyo, just weeks before the city hosts the Olympics.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.3%, led by a 1% gain in Taiwan.
Chinese blue chips added 0.1%.
On this morning, most Asian share markets opened a fraction higher, ahead of a key decision by Australia’s central bank on its quantitative easing programme and despite ongoing concerns over the future regulation of China’s powerful technology sector.
MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.05%.
In Hong Kong, the Hang Seng Index was down 0.7% while China’s CSI300 was off by nearly 0.3%.
Japan’s Nikkei was up 0.45% while the S&P ASX200 stood 0.21% higher.
In South Korea, the Kospi 200 Index rose 0.5% in early trade.
Chinese technology stocks remain under the microscope after the Cyberspace Administration of China (CAC) ordered an investigation into Didi Global Holdings just days after it listed on the New York Stock Exchange.
Coming back on grains market, US agricultural markets will re-open late tonight for the US day session.
There will be no night markets today.
Meanwhile, US weather maps have filled in a solid 2″ across Minnesota/northern Iowa and Illinois, boosting chances for row crops that had missed some of the earlier storms.
Similar improvements for parts of southern Canada, with chances of an inch through this week across south/central SK and AB.
USDA next crop production and WASDE reports will publish on 12 July.
From South America, Brazilian safrinha corn harvest is pushing along, with estimates there in the 10-15pc completed range over the weekend.
Yield/production ideas keep pushing down with more damaged crops from the last few weeks of weather.
In fact, seems that frost that hit Brazil last week would indeed have caused significant damage to the plots.
AgRural has cut by an additional 5.4 Mt its estimated Brazilian harvest this year, to only 85.3 Mt, against 102.5 Mt last year!
On European market, meantime, farming groups Copa and Cogeca forecast that soft wheat production in the European Union would rise 7% this year.
In France, good wheat and barley yields are still expected but forecasts showing more showers next week added to concerns over quality.
Early reports from winter barley harvesting, which made some progress before weekend rain, suggested favourable yields but varying malting quality.
From Black Sea basin, harvest is continuing to pick up speed, with plenty of barley flowing and a few more reports of early wheat coming.
Harvest pressure is starting to show in cash markets as more offers appear.
Weather maps in the Black Sea region have taken a generalised turn towards warmer and drier across the coming weeks which should help harvest push along.
From Australia, Aussie local markets fairly quiet yesterday with the boards closed overseas.
Strained political ties fail to hinder China’s healthy appetite for Australian wheat.
In fact, Australia shipped at least 265,000 mt of wheat to China in June, taking the country’s total exports to China to about 1.68 million mt for the current 2020-21 MY.
BOM still calling for a solid rain across most of the WA cropping belt this week – last runs a fairly widespread inch.
Internationally, Egypt’s GASC bought 240,000 tonnes of Romanian and Russian wheat supplies, underscored stiff export competition from the Black Sea region.
In particular, Egypyian Autorities booked three Romanian boats about US$270.50/t C&F and one Russian boat about $268/t, which worked through with a discounted freight offer.
The Romanian bids were offered on the basis of 237 USD / t, on a FOB basis.
In addition to demonstrating Romania’s heightened competitiveness, this GASC tender is also indicative of the rise in freight costs.
The transport between the port of Constanta and the Egyptian port amounts to 32.7 $ / t, up almost 100% compared to last year.
Iranian GTC booked a large volume of milling wheat in a tender last week and has issued a new tender to buy yet more milling wheat, for shipment in July, August & September.
Deadline is Wed. 7th July 2021.
Have a good day.
