Wheat Consolidates over Concerns about Egyptian Demand
By ODA UK | Published at
Wheat prices in Chicago were down nearly 0.6% as the European session closed. Traders are worried about the GASC's delayed payment for 945KT of wheat (16 shipments). Indeed, Egypt's state-run purchasing agency has delayed until January payments for shipments that should arrive between late November and mid-December. The reason for the payment difficulties is unknown, but traders seem to believe it could affect Egypt's future imports.
Impacted by the decline in U.S. wheat, Euronext wheat also fell, but less dramatically than its U.S. counterpart (-0.25% for the Mar.-19 expiry).
European maize prices climbed in contrast to wheat as they likely followed the recent rise in Ukrainian prices.
On the oilseeds complex, soybean, soybean oil, and soya meal prices hovered near equilibrium during the session. After strong activity early in the week in response to announcements about falling trade tensions between the United States and Canada, the market is now waiting for facts, particularly a decrease in Chinese import tariffs on U.S. products.
Palm prices sank with the outlook for another increase in Malaysian inventories at the end of November. The MPOB's monthly report, to be published on Monday, could show Malaysian stocks totaling more than 3MT, according to forecasts by local traders.
Given the situation and lacking additional information, rapeseed prices tumbled.