Wheat prices on Euronext retreated slightly yesterday in the wake of Chicago’s evolution.
The pressure of the Eurodollar and a slowdown in business are weighing on prices and European wheat started the week on a negative note in a severely slowed market this holiday season.
In fact, against the US dollar, the euro continues its progression at 1.2240 while the rouble stabilizes at 73.75.
So, the rise of the euro against the dollar continues to mechanically reduce Euronext quotations despite the rather bullish news which animated the session.
Algeria announced a wheat tender for two periods of shipment (1-15 Feb and 16-28 Feb).
Until now, Algerian purchases have not been very dynamic compared to previous years.
Taiwan is also seeking 82 000 t of milling wheat sourced from the USA.
Soviet Ag notably reduced its estimate of Russian wheat exports by 4.5 Mt this year (36.3 Mt).
In the Black Sea basin, wheat prices increased in recent days and the analysts estimates that the import tax of 25 € / t which will be introduced from February 15 to June 30, should lead to many postponements of sales to the next campaign.
In addition, Russian customs authorities require a certain period of time to deliver export administrative approval.
In December and until yesterday, the corn volume exported from Ukraine was amounting to 3.175 Mt. for a the total from the start of the marketing year, to nearly 8 Mt, under market expectations.
The reason is probably linked to some issues in the execution of forward contracts despite of real logistic improvements.
In previous years, the corn volume shipped in December exceeded 4 Mt several times.
And this disappointment is also perceptible as in wheat as in the corn.
In fact, the shipments have been under the market anticipations at respectively 381.000 t and 41 000 t from the start of the month.
Across the Atlantic, wheat prices were however put under pressure by more favorable weather and a marked slowdown in port activity last week.
Wheat and soybean prices have lost some ground yesterday too in Chicago, even if last week’s export sales amounted to 303.809 t in wheat, 993.710 t in corn and 1.447.000 t in soybean and these figures were above expectations.
And more, the US Ag., yesterday announced the sale of 150 kt of American corn to an unknown destination, as well as the sale of 359 kt of soybeans to two unknown destinations during the session, and of 33 kt of soybean oil.
However, profit takings before the end of the year weighed as on the wheat as on the soybean prices yesterday.
In addiction, the current weather conditions do not raise any particular fears in the northern hemisphere and winter crops are mostly in dormancy.
The strikes in Argentina are expected to find a positive outcome so, soybean dropped due to the possible favourable outcome.
The strikers currently block about 140 boats.
In addiction, OPEC+ members will meet on January 4th to decide on the level of oil production and operators expect an increase of 500,000 barrels per day.
So, even if funds continuing to post a net long position on the corn and soybean and still net short in wheat, yesterday, have been net buyers only in 17 500 lots of corn, but net sellers in 11 000 lots of wheat and 9 500 lots of soybean.
Palm dropped too, while, rapeseed prices have been stable, in a context of a thin liquidity.
