ODA Market Highlights - 13/03/2019

Wheat climbs on Euronext after French stocks are revised lower.

By | Published at

In wheat, after yesterday's sharp changes, prices in Chicago sank today. The winter storm that is now moving across the United States should bring good precipitation to winter wheat zones.

Euronext wheat did not follow the path of its U.S. counterpart for once. FranceAgriMer's monthly overview supported European wheat despite the decline in Chicago and gains by the euro-dollar exchange rate. Indeed, FranceAgriMer significantly revised French ending stock compared to last month (-550KT to 2.45MT, a tight level) after adjusting exports to non-EU countries higher to 9.5MT (+650KT). The agency suggested exports could be revised even higher.

On the maize market, U.S. prices were advancing as the European session closed. One U.S. analyst (Allendale) estimates acreage planted for 2019-2020 is below the USDA's initial projections. Euronext maize finished the session higher in the wake of wheat despite FranceAgriMer's upward revision of 2018-2019 French maize inventories (+200KT).

In barley, China has returned to French suppliers with the announcement of a shipment of 60KT.

In trade news, Tunisia bought soft wheat (92KT), durum wheat (42KT), and barley (25KT). Iran purchased 200KT of maize, 200KT of barley, and 200KT of soya meal. Korean buyers launched a call to tender for 80KT of Australian and U.S. wheat while Taiwan bought 65KT of Argentinean maize.

On the oilseeds market, soya prices in Chicago were rising as Euronext closed. U.S. analyst Allendale estimates 2019 U.S. soya acreage at 84.23 million acres, or slightly below USDA estimates of 85 million acres and 5.5% less than last year.

Palm oil fell to its lowest level in three months because of a drop in Indian demand due to a forecast increase in local production of oilseeds.

Penalised by a decline in palm and canola, as well as the increase in the euro-dollar exchange rate, rapeseed finished the day lower.