The White House approved increasing COVID stimulus checks for individuals and their dependents to $2,000, but measure’s fate in the Senate is uncertain.
The Argentine government sponsored talks yestarday in an attempt to end the strike by the Workers’ and Oil Employees Union (SOEA) and the Federation of Oil Workers that has been underway for more shy of three weeks.
Officially, more than 140 ships have been unable to load their ag and agro-industrial goods due to the strike, but Bloomberg last week had indicated as many as 170 ships were waiting to load.
An agreement has been found between trade unions and the CIARA (Chamber of the Argentinean Edible Oil Industry), but some questions are still open more.
Chinese meat importers and processors are calling on countries with Covid-19 outbreaks to increase scrutiny of meat exports.
The group proposed exporters in Covid-impacted areas should disinfect the outer packaging of products and the inner side of containers before sealing export products.
In the meantime, South Korea has confirmed 31 cases of highly pathogenic H5N8 avian flu at local farms as well as 42 cases of bird flu in wild birds since late October.
So, around 9.8 million birds have been culled.
US cash cattle trade last week took place at an average price of $109.19 up roughly $3 from the week prior and futures have signaling hopes for higher prices again this week, with the front month at nearly a $4 premium to the cash.
In fact, the pork cutout value jumped $2.51 to start the week, with all cuts rising and bellies and loins leading the charge.
That had return some buying to the futures market after the setback Monday and this storm have seen lifter all cash prices, and for soybean particulary.
So, in this context, yestarday Chicago, prices have benefitting from a further impetus with new highs have been recorded on the corn and the soybean complex (grain, oil and meal).
Prices of the soybean are now close to 13 $/b on front deliveries to deal on highest levels since August 2014.
At the same time, the March 2021 corn delivery is dealing above 4.60 $/b, its highest since May 2014.
Even if in a lesser measure, also wheat prices in Chicago rebounded after the decline’s move seen at the beginning of this week.
The European market is continuing benefit from the firmness of prices in the USA and, of course, from the tight context of European supplies.
Indeed, wheat, corn and rapeseed were dealing yesterday on new highs for this year.
Rapeseed in particular benefited from the sharp rebound in Canadian canola and is now heading towards € 400 / t.
Across the Atlantic, a sustained rate of exports and demand from oilseed processors are rapidly reducing stocks of Canadian canola.
And, the appreciation of the Eurodollar, which is now dealing above 1.2260, seems to have no effect on prices for the moment, due to the international demand remains so significant.
European wheat, for its part, took advantage of the return to Algerian purchases in an attempt to break major resistance.
The Algerian Purchasing Office is looking for January-February loads.
European wheat exporters remain optimistic; indeed european prices are still attractive compared to other origins such as Argentinian or even Russian.
However, it will be necessary to understand the marketing strategies that will be implemented in the Black Sea area.
In fact, yesterday, the Ukrainian Minister of Economy estimated that 90% of winter cereals are in favourable condition.
The hot and rainy weather in November has enabled crops to recover from a previously degraded situation.
Nevertheless, it should be noted that the autumnal drought has caused a net decrease in the cereals’ surface area of about -5% and more than -10% in rapeseed.
This last crop remains the most impacted because it has been sown earlier.
The Minister added that he is expecting a good harvest in 2021.
The yields could actually largely compensate for acreage loss and thus enable Ukrainian wheat production to exceed 25 million tonnes.
The physical activity will remain limited until the end of the week.
Traders are expecting a gradual return to trade as of next week.
In the meantime, the financial market remains open even if, this is the last full day of trading in the US and EU market today.
December 31st will indeed be a shortened session, to end at 1:55 p.m. before a long weekend.
The reopening is scheduled for Monday, January 4.
We’ll see tonight how it will evolve today’s session, although in pre opening is displaying different take profits.
