European Grains Tumble in Chicago's Wake
By ODA UK | Published at
International oilseeds markets were bearish today.
In oils, palm prices felt pressure after the MPOB released December figures for Malaysia. Indeed, between November and December, Malaysian palm inventories rose 6.9%, a larger increase than traders expected.
On the soya complex, despite Conab lowering Brazil's soya production target to 118.8MT (-1.27MT), markets were very nervous about talks between Chinese and U.S. delegations, which met as the week began to attempt to ease trade tensions. While the meeting was a sucess according to both delegations, markets are waiting for concrete information, particularly about China returning to buy U.S. agricultural products.
Despite the decline in oils and the soya complex, rapeseed held up relatively well on the session and finished the day near equilibrium.
Wheat prices sank in Chicago following Egypt's purchase of wheat from strictly Russian sources (415KT) last evening. Two U.S. offers were rejected. European wheat also fell, recording a second bearish session.
U.S. maize prices were tumbling in the wake of soya as the European session ended. Conab, Brazil's government statistics agency, did not revise its 2018-2019 maize production estimate lower even though soil moisture levels are currently falling in Brazil. It estimates the harvest will be 91.2MT. Euronext maize also finished the session lower in a reflection of declines on the wheat market.