US grain prices were mixed but mostly higher last Friday, with some wheat contracts jumped as much as 4.5% higher by the close.
Corn prices also made inroads, moving 1% higher.
In contrast, soybean prices continued to spill lower a bit.
On macro markets, oil settled above $79 a barrel on Friday, just shy of a three-year high reached earlier this week, on expectations that OPEC ministers will maintain a steady pace in raising supply.
Brent has risen over 50% this year and reached a three-year high of $80.75 on Tuesday.
For the week, Brent futures were up around 1,38% and WTI crude was up 2,35%, natural gas prices were up about 7%.
On the financial side, U.S. stock indexes on Friday recovered from early losses and settled moderately higher, but not by enough to keep the stock market from its worst week since the winter.
Thus, on Friday the S&P 500 Index closed up +1.15% , the Dow Jones Industrials Index closed up +1.43%, and the Nasdaq 100 Index closed up +0.70%.
Meantime, Asian shares dipped on this morning as concerns about China’s property sector and inflation worries offset upbeat U.S. data and positive news on new drugs to fight the coronavirus.
Trading in shares of debt-laden China Evergrande was suspended after it missed a key interest payment on its offshore debt obligation for the second time last week.
Thus MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.3%.
The index marked its first quarterly fall in six quarters.
Hong Kong led the decline with a 1.9% fall in the Hang Seng index.
Japan’s Nikkei erased earlier gains to stand 1.4% lower at one-month lows of 28,375.
Chinese mainland markets will be closed until Thursday for the National Day holiday while South Korean markets were also shut today.
Coming back on grains market, corn prices picked up gains of around 1% partly spurred by spillover strength from wheat.
However, harvest pressure applied enough headwinds to keep prices from moving even higher.
Soybean prices, in contrast, were down again spurred by disappointment over USDA’s quarterly stocks data, along with ongoing harvest pressure.
Wheat prices, meantime, continued to make significant inroads, on the USDA annuncment that USc stocks fell to a 14-year low.
On European market, prices recorded a sharp rise on Euronext at the end of last week, for all products combined.
European market is benefiting from a declining euro / dollar parity and an international context which is still tense with active demand.
December contract posted a new high at € 264.25 / t.
Consequentially also corn prices traded to a new high with November contract at 236.50 € / t.
Delays in corn harvests seen FranceAgriMer to announce on Friday that as of September 27, the areas harvested had barely reached 2%, compared to 31% a year earlier.
Rapeseed for its part rebounded strongly, returning to its fundamentals after being under pressure from American soybeans during Thursday session.
From North Africa, Egypt’s GASC announced on Friday they it had a new loan facility from the French Government which is meant to encourage its imports of French grain including wheat.
From the Black Sea basin, in Ukraine too, corn harvests are struggling to progress, with only 7% of projects completed, against 18% at the end of September 2020.
Weather maps remain dry across the Black Sea, good for progress in fieldwork but starting to raise some background concerns about the dry soils in some areas.
Meantime, Ukrainian Ministry of Agriculture on Friday communicated the updates of export figures since the start of the campaign.
Export levels are up sharply from last year to date, benefiting from an increased harvest volume.
The volume of soft wheat exported exceeds 8.9 Mt.
The activity reported since early July is 3.7 Mt in barley and 1.4 Mt in corn, respectively.
Faced with significant supplies, Ukraine could thus, according to the ministry, see export figures at 30.9 Mt in corn, 24.4 Mt in wheat and 5.2 Mt in barley over the current campaign.
Russia, for its part, raised its export tax from $ 4.30 / t to $ 57.80 / t, thus further weakening its international competitiveness.
The government has also revised upwards the amount of export taxes for barley at $ 43.1 / t and for corn at $ 45.2 / t.
Talk of a new Russian export ban/quota has also started doing the rounds again with varied ideas about potential levels and dates.
However, to note Russia export activity has been strong since the start of the season.
From Australia, cash markets looking to start the week firmer again with the global rally on Friday.
Meantime, extended forecasts are flirting with another storm event across the east coast mid month, but low confidence in models exists at this point, and despite the Bureau of Meteorology’s ongoing outlook for a wet spring.
We wish you a good day and a good start to the week.
