ODA Market Highlights - 02/01/2019

Rapeseed did not benefit from the uptick in soya and palm oil.

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Wheat was rebounding in Chicago (+1%) for the first session of 2019 as the European session ended after falling to its lowest level in over a month on Monday evening. European wheat prices followed the move to a lesser degree (+0.25%) despite the sharp graphic decline of the euro-dollar exchange rate, which was likely an additional support for prices denominated in euros. In international trade, Ethiopia launched a call to tender for 400KT of wheat (March/April delivery).

U.S. maize prices did not really benefit from advances by U.S. wheat and soya, and were hovering near equilibrium as the European session finished. On Euronext, with the exception of the Jan.-19 expiry which closes in less than one week, European maize registered a slight consolidation.

On the oilseeds market, prices on the soya complex climbed today as weather risks increased in Brazil. While it has rained in recent weeks, the rain has been insufficient, and soil moisture levels have gradually fallen across the entire production region. This puts the country's production at risk since crops are starting the grain-fill phase. 

Palm prices also rose in Malaysia. With initial export estimates 7.9% higher between November and December, and production likely down 3.4% during the period, prices climbed with an announcement about a decrease in taxes on palm oil imports to India. The government lowered import tariffs 4% to 40% on crude palm oil and 50% on refined palm oil.

Despite gains on the oilseeds market and a lower euro-dollar exchange rate, rapeseed finished the session near equilibrium. Volumes were low on the day after New Year's day.

Team ODA wishes you a very happy 2019.