Market movements were mixed in Friday trading.
Worries are rising with the increase of coronavirus cases away from the UK.
European prices were firm for all products due to new buying interests on the international stage.
However, US cereals markets finished the week on a mixed trend.
In fact, lots of risk of sentiment around on the ag side with the reports coming this week in the US so, winter wheat and stocks reports can be wild cards.
Surveyed estimates are calling for a 35-million-bushel reduction in soybean ending stocks and a 100Mbu reduction in corn.
Winter wheat acreage ideas have wide ranges but mostly lean towards an increase of around 200,000 in Soft Red Winter wheat area, and 800,000 in Hard Red Winter wheat plantings for a total figure near 31.5M acres.
Meanwhile, prices remain close to recent highs.
Indeed, the feed barley soared, probably on the back of Chinese interests.
New flash export sales on Friday had 204,000t of old-crop beans selling to China, while Japan bougt 120 000 t of milling wheat sourced from the US, Canada or Australia.
The Chinese government released about 2 Mt of wheat from its strategic reserves to supply its domestic market and try to curb prices’ inflation.
Soybean prices, obviusly, benefit from new purchases from China and concerns about the Brazilian potential.
In this country, the harvest has started in early regions.
South American weather maps have turned dry again on extended runs for Argentina, though northern soybean areas should see at least 30-50 millimetres of rain this week.
Estimates out of Brazil, however, had the Brazilian farmer at around 58-per-cent sold on their new-season soybean crop already, capitalising on the weaker local currency and firm prices through the past couple of months.
And, if worries about drought stress have been fairly muted for soybeans so far, concerns are again increasing around corn.
According to the Rosario Exchange, 65% of the maize acreage is facing water deficit.
So, rains will be needed quickly as crops are now reaching a crucial stage in their development.
However, Argentina has lifted its ban on maize exports, even if still limits its exports to 30,000 tonnes a day and this helped to ease cereals prices’ rise in Chicago on Friday, but failed to reverse the bullish trend in anticipation of tomorrow’s USDA report.
Meanwhile, the Mexican Government is debating whether the proposed GMO corn ban would apply to feed corn too; if it does, it will be a boon for US sorghum producers, as much of the Mexican feed program uses US corn.
Oilseeds prices remain strong.
The palm and canola are pulling the rapeseed.
On Euronext, rapeseed prices have gained 6€/t on current crop prices.
Winnipeg canola March contract up C$8.40/t to $665.20.
Black Sea markets are back from holiday tonight; while the Orthodox New Year is Thursday, but its effect on the trade will be limited.
However, the Black Sea basin will face an important cold snap in coming days.
By the end of the week, temperatures should drop below -25°C in the Russian central district and in the Volga Valley.
The snow layer should increase and reach about 30 cm in these areas.
This cold weather will also hit Ukraine, but in lesser proportions.
Here, the snow protection is heterogeneous and could become a matter of concern for the operators.
Aussie trading was thin on Friday in local markets. The Victorian harvest is in its final leg, with most activity now concentrated in the Western Districts.
Australia outlook for the sorghum crop remains optimistic based on soil moisture and forecast rain.
In this context, friday, funds were net buyers in 5 000 lots of corn and 15 000 lots of soybean.
They were net sellers in 3 000 lots of wheat.
So, Chicago wheat contract for March down US3.5 c/bushel to 638.75c;
Kansas wheat contract for March was down 3.75c/bu to 594.75c;
Minneapolis wheat contract for March was up 4.5c/bu to 607.75c;
MATIF wheat contract for March was up €2.25/t to €216.75;
MATIF corn contract for March was up € 1,75/t to €202,50;
Corn contract for March was up 2.25c/bu to 496.25c;
Soybeans contract for March was up 19.5c/bu to 1374.75c.
The Dollar is slightly higher this morning at 1.2250 vs. Euro and 74.65 vs. Rouble.
The crude oil remains well oriented and is dealing at 52.24 $/b in NY.
