ODA Market Highlights - 11/01/2018

The rebound in the exchange rate continues to pressure European markets.

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Prices for wheat, rapeseed, and maize lost nearly 1% during the session as the euro-dollar exchange rate made a sharp 0.7% gain. Indeed, a rumor suggests that China could resell U.S. treasury bonds that are judged less attractive. The ECB suggested it could raise its interest rates.
This week's strong dynamic for European wheat exports, as well as lower production estimates for Argentinean maize were not able to reverse the movement on grains.
On U.S. markets, prices for the soya complex also sank in anticipation of the USDA reports to be released tomorrow at 18H00. In addition to this factor, several South American analysts published their soya production estimates. Overall, forecasts climbed in Brazil to between 110MT and 114MT (108MT for the USDA in December) and declined in Argentina to approximately 52MT (57MT for the USDA in December). We note that 132KT of U.S. soybeans were sold to an unknown destination. Lastly, palm prices also sank (-2.5%) as the ringgit strengthened against the dollar and forecasts emerged for less significant declines than expected in seasonal production.
Saudi Arabia launched a call to tender to buy nearly 1MT of feed barley.
Lastly, please note the USDA will publish three reports Friday evening: the first will be on 2018 winter wheat drilling, the second will be on quarterly grain inventories, and the third will be the usual monthly report.