Grains Are Near Equilibrium
By ODA UK | Published at
After starting the day with a slight decline, U.S. wheat prices made slight gains as the European session closed. The sale of 120KT of U.S. wheat to Bangladesh was announced today, which provided a bit of support to prices. The movement was limited by the Russian ministry's upward revision (+1MT) of the country's estimated grain production (106MT).
Euronext wheat rose slightly in the wake of Chicago and the drop in the euro-dollar exchange rate. The French ministry revised its production estimate for the main grains downward to 34.2MT for wheat (-350KT), 11.3MT for barley (-350KT), and 12.2MT for grain maize (-200KT). However, these estimates did not have much impact on prices.
On the barley market, Jordan bought 60KT of barley.
On the oilseeds market, palm oil prices climbed in the wake of crude oil, which rebounded today. Indeed, the rise of black gold was fueled by a hurricane expected along the Gulf of Mexico that could impact U.S. crude oil infrastructure and yesterday's strong explosion at Canada's largest refinery.
Faced with a rising dollar, the soya complex was sinking as the European market closed.
Despite support from oils, the fall of the euro-dollar exchange rate, and the increase in crude, rapeseed prices finished lower for the Nov.-18 expiry; long-term expiries finished higher. The French Ministry of Agriculture revised 2018-2019 rapeseed production slightly higher to 4.9MT (+100KT).