Wheat Continues to Rebound
By ODA UK | Published at
In grains, U.S. wheat prices were making sharp gains as the European session ended despite weak U.S. export sales of 236KT versus expectations of 400KT to 600KT. The rebound still seems related to considerations of hedge fund buybacks after massive sales in recent weeks. In the United States, localised flooding has been seen after yesterday's winter storm. However, the actual impact on wheat crops seems limited.
In the wake of Chicago, Euronext wheat continued its rebound by recording a third consecutive session of gains. The return of Algerian demand, as shown by yesterday evening's purchase of 450KT of wheat for April/May delivery, is promising for French wheat. We also note Turkey bought 290KT of wheat for near-term delivery (very likely from Black Sea sources).
Maize prices followed wheat on both sides of the Atlantic. In Chicago, maize was not affected by poor U.S. weekly export sales, which were well below expectations (800KT to 1200KT) at 372KT.
On the oilseeds complex, soybean prices were hovering around equilibrium as Euronext closed thanks to strong U.S. weekly soya sales of 1.9MT (versus 1.2MT to 1.9MT forecast).
In oils, the weak outlook for global demand continued to pressure on palm. Soybean oil prices followed in palm's wake.
Despite an increase in canola and a decline in the euro-dollar exchange rate, rapeseed finished the day lower in the wake of oils.