The exchange rate rises, magnifying the decline of European wheat.
By ODA UK | Published at
After advancing during recent sessions, wheat prices were consolidating in Chicago as the session ended. In Europe, Euronext felt the full force of gains by the euro-dollar exchange rate. The rate advanced 0.65% as the dollar continued to be under pressure from Friday's remarks by the U.S. Federal Reserve, which suggested that U.S. interest rate increases may be slowing. As a result, European wheat finished the day lower despite the call to tender launched by Algeria this morning for milling wheat (delivery mid-February to mid-March).
In maize, despite wheat's slump and the euro's rise, prices finished the session at equilibrium. For its last trading day before closing, the Jan.-19 expiry was not traded. U.S. maize was consolidating in Chicago as the European session finished.
On oilseeds markets, prices for soybeans and soya meal rose slightly in Chicago. In addition to weather risks in Brazil, traders are waiting for news related to the decline in trade tensions between the United States and China with the two delegations meeting in China as the week begins.
Palm oil sank during the session with the outlook for higher Malaysian inventories as of 31 December. The MPOB's monthly report will be published from Wednesday night into Thursday this week. Soybean oil was near equilibrium on the other side of the Atlantic.
In Europe, rapeseed prices closed the session near equilibrium due to competing factors. In addition to falling oils and rising soybeans, support from crude oil was diminished by the euro's gains against the dollar.