The USDA Report Offers a Little Support for Prices
By ODA UK | Published at
For grain markets, publication of the USDA report was the session's key factor. The report was well received by prices following its release. Indeed, the global ending stock for wheat was revised lower by 1.1MT for the 2018-2019 campaign whereas traders had expected the number to be stable. The change was made possible by a downward revision in Australian (18.5MT) and Russian (70MT) production. Following this information, Euronext wheat prices finished the session slightly higher despite a rebound by the euro-dollar exchange rate.
In international trade, Bangladesh launched a call to tender for 50KT of milling wheat.
In terms of maize, the USDA report positively impacted Chicago prices. Against all expectations, U.S. production was revised lower by 1.2MT to 175.4MT while the outlook for exports improved (+2MT). As a result, the U.S. ending stock was 2.7MT below traders' expectations.
On the oilseeds complex, after spending much of the day lower, soybean prices gained slightly as the European session ended after the USDA did not raise soya production as the market expected. On a global level, no major changes were made to the world balance sheet, except a 1.91MT increase in beginning stock, which can be found right in the ending stock.
Palm oil prices continued to sink today in the wake of crude oil.
Despite the rise in the euro-dollar exchange rate and the decline in crude, rapeseed prices ended the day higher in the wake of soya.