Egypt's call to tender did not impact wheat prices.
By ODA UK | Published at
Wheat prices were calm today despite Egypt's return to the marketplace for late May/early June deliveries. Towards day's end, the GASC bought 240KT of Romanian and Ukrainian wheat. The U.S. wheat offer (SRW) was the cheapest in terms of FOB prices, but when freight costs to Egypt were included, U.S. wheat was outrun by its Black Sea competitors. No French shipments were offered. Traders were probably feeling burned by the rejection of the French shipment early this week. Given the situation, wheat prices were hovering near equilibrium on both sides of the Atlantic as the European session ended. On Euronext, despite gains by the euro-dollar exchange rate, expiries for the 2019-2020 campaign moved slightly higher.
The European maize market closed lower for the last session of the week. In addition to pressure from changes in the euro, traders expect European maize acreage to increase, replacing rapeseed and beets. This weighed on prices. In France, planting is going well. As of 8 April, FranceAgriMer estimates 16% of acreage was sowed versus 1% last year. We also note Turkey launched a call to tender for 300KT of maize.
On the oilseeds complex, monthly figures for Chinese soya imports in March were 10% higher at 4.92MT compared to February, which allowed soya prices to stay near equilibrium as Euronext closed.
In oils, despite strong palm exports over the first ten days of April and crude's good performance, palm prices sank slightly.
In the wake of canola, rapeseed prices finished the day higher thanks to the euro-dollar exchange rate.