ODA Market Highlights 10/01/2018

The Euro's Rise Pressures the European Market

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On the oilseeds complex, prices for soybeans, soya meal, and soybean oil remained under pressure today. Traders expect increases in U.S. soybean inventory and in Brazilian production in the next USDA report. Both of these expectations led to profit-taking in Chicago. Brazilian analyst Céléres revised its production estimate to 11.8MT, 1.9MT higher than last month. The USDA estimated production at 108MT in its last report of December 2017.
 
Palm oil prices advanced on the Malaysian market. While December figures for production, exports, and inventory met expectations overnight, the market was supported by export gains of more than 12% over the first 10 days of January as compared to the same period in December.
 
Rapeseed prices did not benefit from the uptick in palm and felt pressure from the soya complex, as well as an increase in the euro-dollar exchange rate, to move into negative territory.
 
Today FranceAgriMer published its grains overview. The agency lowered its ending stock forecasts for soft wheat, maize, and barley. Export dynamics are driving these changes. If wheat exports to non-EU countries are revised lower by 200KT, exports to EU countries climb sharply: +530KT to 8.6MT.
 
This did not affect Euronext since the euro spent much of the day 0.5% higher.