Serious Concerns Arise about U.S. Wheat
By ODA UK | Published at
A cold wave has been sweeping across the United States the last two days. Temperatures have fallen below -20°C across a large portion of the state of Kansas, the leading grower of winter wheat. Snow cover is nearly nonexistent for a wide swath of the state, which is at the heart of traders' concerns. Given the situation, U.S. wheat rose 2%. The euro's increase against the dollar sharply limited support on Euronext.
The euro rose against the dollar after indicators were published showing strong activity in the euro zone's secondary sector.
On the soya complex, rapeseed prices advanced today in the wake of vegetable oils.
Indeed, palm oil gained more than 1% on the day following the release of preliminary Malaysian export figures for December. Down more than 15% during the first two weeks of December (compared to the same period in November), Malaysian palm exports posted nearly 10% gains during the month of December.
Soybean oil followed the movement as domestic demand for biodiesel production continued to be strong and export sales climbed slightly with 44Kt recorded last week versus 21Kt the previous week.
Prices for soybeans and soya meal increased slightly. While rain fell recently in Argentina and southern Brazil, traders are worried about the lack of rain forecast for these areas this week.