European market
The approach of the closing date for March 2024 wheat contract on Euronext has meant a wide range of variation since the start of the week. The gap between the high at the start of the week and yesterday’s low was -17.50 €/t. Yesterday’s further decline has pushed the nearby maturity to trade below the price of the next maturity, and above all to a new low, breaking through the €200/t level.
Export activity in February from Russia and Ukraine remains buoyant. European origins therefore remain under pressure at a time when current prices are attracting interest from certain importing countries.
Despite the fall in wheat prices yesterday, the corn market was little changed. The situation was similar for rapeseed, which closed unchanged on Euronext. In oilseeds, the rebound that has been underway since the start of the week is still visible in both palm oil and canola, providing an element of support.
American market
With soybean prices stabilising, the grain market was busier in Chicago yesterday. Wheat prices retreated, erasing the previous day’s gains as the near-term deadline approached. The new weekly export figures, to be published today by the USDA, should confirm that export activity is still highly competitive on an international scale, with export activity from the Black Sea still buoyant.
Corn prices rose again yesterday. The recent lows traded at the start of the week are prompting financial operators to buy and close some positions. Price levels over the past few days may also have encouraged new export sales, providing some support for old crop prices.