Wheat tumbles despite Egypt's return to the marketplace.
By ODA UK | Published at
On grain markets, Egypt's call to tender was the highlight of today's session. It came as traders are wondering about the impact of the GASC's delayed payments for previous purchases. Egypt bought 350KT of wheat from Russian and Ukrainian sources. In contrast to the last two calls to tender, no U.S. shipments were proposed. Given the situation, U.S. wheat was sinking as the European session ended. Euronext wheat followed the decline, except for the Dec.-18 expiry which closes very soon (Monday, 10 December).
At the same time, StatCan, Canada's national statistical agency, released its production estimate for the 2018-2019 campaign. Wheat production was higher than expected at 31.77MT, or 1.7MT above 2017-2018 levels.
In addition to Egypt's purchase, trade was rather brisk today. Thailand bought 68KT of feed wheat, Jordan launched calls to tender for wheat and barley, and Algeria bought 40KT of maize. U.S. maize prices were near equilibrium as the European session closed despite declines by U.S. wheat and soya. Sales totaling some 200KT of U.S. maize to Mexico limited pressure on the market.
On the oilseeds market, prices on the soya complex fell again today. Traders are losing patience as China has not returned to buy on the U.S. market.
Palm prices made small gains with a falling outlook for Southeast Asian seasonal production that could limit inventory growth in the coming months.
Canadian canola prices were climbing as Euronext closed after StatCan published its production estimates. Canada's national statistical agency forecasts 2018-2019 campaign production to be 20.3MT versus 20.6MT expected by traders.
Despite gains by Canadian canola, rapeseed sank during the session, penalised by soya, crude oil, and the euro-dollar exchange rate.