Russian Exports Return to Center Stage
By ODA UK | Published at
Wheat prices began the day sharply higher on both sides of the Atlantic under the influence of new fears about Russian exports. Russian officials announced they could suspend the grain loading activities of several companies located in leading export zones if certain health regulations are not respected. This news, which broke yesterday evening after Euronext closed, had already fueled the end of U.S. trading yesterday evening. The support eased over the session when Russian officials qualified their remarks by suggesting they would wait for results to be analysed. Euronext closed moderately higher (+0.6%).
In terms of the global grain trade, 230KT of U.S. maize was sold to Japan today. On the straw cereals market, Tunisia put 25KT of soft wheat, 50KT of feed barley, and 75KT of durum wheat under contract following its call to tender yesterday. Turkey bought 138KT of barley.
On the oilseeds market, prices for oils advanced again in the wake of crude, which today climbed above $85/bl for Brent.
Soybean and soya meal prices sank slightly today. Despite continued forecasts for strong rains over the next seven days across the U.S. production region, the rain should diminish in two weeks, slightly mitigating traders' fears.
In Canada, more snow was recorded in Alberta, which could continue to disrupt harvesting. In response, canola prices rose a bit in Winnipeg.
Despite support from oils, canola, the decline in the euro-dollar exchange rate, and rising crude prices, rapeseed climbed moderately on Euronext