U.S. Markets Adjust ahead of USDA Reports
By ODA UK | Published at
At the macroeconomic level, the euro-dollar exchange rate stabilised today after sinking sharply yesterday evening following publication of European economic growth figures. The European Commission expects GDP to grow 1.3% in 2019 versus its previous estimate of +1.9% last fall. When examined more closely, the shrinking growth is attributed mainly to Germany, which has been significantly penalised by declining exports to the United States, and to Italy's unstable economic policy. As Euronext closed, the euro-dollar exchange rate was trading at $1.135.
Euronext wheat fell by nearly 1% today in the wake of Chicago. Indeed, the U.S. market was 2% lower at day's end because of readjustments in positions ahead of tomorrow's publication of USDA reports.
Wheat exports were solid. For the week that ended 27 December, the United States sold 593KT of wheat exports. December numbers from French customs showed wheat exports were also very good: 880KT outside the EU.
In oilseeds, after being closed for two days for Lunar New Year, palm prices advanced in Malaysia during the session. On the U.S. market, prices for soybeans, soybean oil, and soya meal tumbled as the day ended under pressure from the dollar's rebound and ahead of tomorrow evening's publication of several USDA reports.
Lastly, European rapeseed resisted pressure from the soya complex to finish a bit higher, taking advantage of movement by the exchange rate.