U.S. Wheat Sees a Sharp Technical Rebound
By ODA UK | Published at
Chicago wheat prices rebounded sharply after sinking to low levels. The move was essentially technical given that no major news appeared to prompt the increase. Euronext wheat followed its U.S. counterpart despite gains by the euro-dollar exchange rate as the European session ended (ahead of the British parliament's vote on Brexit, which will take place this evening).
In the global grain trade, while Algeria's call to tender for milling wheat is still in play, Tunisia is shopping again for 92KT of soft wheat and 42KT of durum wheat (April/May delivery), as well as 75KT of feed barley (August/November delivery). We also note Turkey bought 300KT of maize (April/May delivery).
Led by wheat, maize prices climbed on both sides of the Atlantic. With that in mind, Conab's upward revision of Brazil's 2018-2019 maize production (+1.2MT to 92.8MT) did not affect the U.S. maize market.
U.S. soybean prices were rising as the European market closed, mainly in connection with wheat. At the same time, Conab, the statistical agency of Brazil's ministry of agriculture, revised 2018-2019 soya production 2MT lower to 113.5MT given the dry conditions that persisted during crop development. As a result, Brazilian soya exports were revised lower by 1.5MT to 70MT. Prices for soya meal and soybean oil continued the same movement and followed in the wake of soybeans.
The palm market continued to integrate figures from the MPOB's repot and dipped during the session
Despite the increase in the euro-dollar exchange rate, rapeseed finished the day higher in the wake of soya.