The USDA reports have little impact on the market.
By ODA UK | Published at
The day was marked by publication of several USDA reports: the monthly report, 2019 wheat acreage, and quarterly inventories. The reports did not cause significant volatility on the markets.
For grains, the main changes were the 5MT downward revision of U.S. maize production and the 3.5MT upward revision of Argentinean production.
We note 2019 winter wheat acreage was also published. It is down 4% compared to last year, but 2% higher than forecast.
In oilseeds, the USDA revised Brazil's soya production down by 5MT, which meets market expectations, as a result of dry conditions over recent months. At the same time, U.S. production was revised 1.52MT lower after changes to acreage harvested and yields.
Significant changes were also made to South American stocks for the last two campaigns based on strong exports from Brazil to China that gradually depleted supplies while Argentina became a net importer during the second half of the campaign, indicating that its stocks were overestimated.
U.S. and global soybean inventories fell below expectations, but did not greatly affect the soybean and soya meal markets, which were near equilibrium as Euronext closed.
Oils sank, penalised by a new drop in crude to $61.8/bl for Brent.
With another decline in the euro-dollar exchange rate to $1.133 during the session, European rapeseed resisted pressure from oils to finish at equilibrium.
In other news, France sold more wheat to Egypt. Following its call to tender, Egypt bought 300KT of wheat, including 120KT from France, 120KT from the United States, and 60KT from Ukraine.
The Russian Ministry of Agriculture will meet with grain exporters on 11 February. The meeting is part of the government's plan to maintain reasonable domestic prices.