The decline in Chinese-U.S. tensions supports U.S. markets.
By ODA UK | Published at
On the oilseeds complex, prices for soybeans, soybean oil, and soya meal were advancing sharply as Euronext closed after the Chinese president met the U.S. president at the G20 this weekend. Statements by the two leaders seemed to agree on a decrease in trade tensions between the two countries. Even if for the time being no concrete actions have been taken, the situation seemed to reassure traders.
In contrast, despite a rebound in crude oil prices, palm prices continued to feel pressure from significant stocks in Indonesia and Malaysia, the two leading exporters.
After starting the day higher, rapeseed prices finished the session near equilibrium, reflecting the impact of palm and an uptick in the euro-dollar exchange rate.
In terms of grains, maize and wheat prices climbed in Chicago, feeling the optimism of progress in trade negotiations between China and the United States. At the same time, ABARES, the Australian Bureau of Agricultural and Resource Economics, confirmed an estimate of Australian wheat production below 17MT, the lowest in ten years. Australia's harvest is still underway.
Wheat was also fueled by a Syrian call to tender for 200KT. An Iraqi call to tender is also in progress. U.S. sources are the most competitive to Iraq, which provided additional support for U.S. wheat prices.
European grains had difficulty echoing Chicago's gains due to the euro-dollar's rise. They finished moderately higher on the session.