Euronext Is at Equilibrium
By ODA UK | Published at
U.S. wheat prices succumbed to weak export sales. While many traders expected a rather calm week with two holidays, sales were very weak at 131KT. In addition, warmer-than-normal weather allowed Ukrainian wheat to develop, and the ministry's ratings are improving.
Pressure on Euronext was nonexistent thanks to the euro's decline.
Algeria bought more than 390KT of soft wheat as part of the call to tender it issued yesterday.
On the oilseeds market, soybean and soya meal prices continue to follow weather patterns in Argentina despite the strong outlook for Brazilian soya production. Today traders were concerned about the risk of less acreage in Argentina due to the dry conditions. This support for prices in Chicago was limited by this week's disappointing export sales figure.
Malaysian palm oil prices recorded an increase of more than 1% today on near-term expiries. Traders expect a production decline in December, which supported prices. U.S. soybean oil hovered close to equilibrium.
European rapeseed stayed near equilibrium with the drop in the euro-dollar exchange rate, which lost part of yesterday's gains.