European cereals at Euronext

• The June 2024 corn contract on Euronext returned to 200 euros/t, after closing Friday evening trading up 4,50 euros/t at 201,75 euros/t.

It is the highest closing price in three and a half months in this market, which has been supported by a slower pace of imports into the European Union in recent weeks.

Trailing by maize, wheat maturing in May 2024 thus found support to close trading up +0,75€/t at €206,50/t, the highest close in the last month.

The EUR/USD low, which continues to hover around 1,0650, supports European grains. The market is also taking into account renewed risks from the Middle East and the Black Sea, where infrastructure was again damaged in the Odesa region.

At the beginning of the week, it is the weather that will cause concern. Early morning low temperatures are affecting crops from Poland to France just as they reach cold-sensitive stages. Friday, FranceAgriMer gave soft wheat from France a rating of 64% "good to very good", down from 93% last year and the lowest since 2020.

Weekly ratings for winter barley and durum wheat were also renewed, up 67% and 70% respectively "good to very good". Spring barley, now 98% seeded, saw its condition improve 3 points on the week to 63% "good to very good".

Rapeseed is also penalized by the excessively wet and cold weather in Europe. Prices continue to consolidate around €450/t on Euronext amid an ongoing correction in palm oil prices in Kuala Lumpur.

American market

The resumption of trading at the beginning of the week in the American market was marked by a recovery in prices for all products listed on the Chicago Stock Exchange.

Grain prices rose strongly, continuing the rebound seen at the end of last week. SRW wheat returned to the highest levels since early March. Rising above $6/bu again, the price of the September 2024 contract is back where it has been since mid-February.

Forecast worsening growing conditions support US wheat prices. USDA announced that winter wheat crops had deteriorated by 5 points from the previous week. Currently, 50% of the area is assessed as "good to excellent", which is below expectations. Only 15% of spring wheat was planted, also a limited increase from the previous week.

In line with the increase in the price of wheat, the price of corn also increased yesterday, although to a lesser extent. Corn planting is progressing at an expected pace, with 12% of the area currently planted, which is equal to last year's level.

In the US, soybean plantings are advancing at the same pace as last year, with 8% of the area currently planted. Along with the increase in soybean prices, soybean oil, which has been on a steady downward trend for the past three weeks, is also making a comeback, climbing back above $45/lb.

Quotations Euronext 22.04.2024/1/XNUMX (GMT+XNUMX)

Wheat (€/t)

Maize (€/t)

Rapeseed (€/t)

Article written by Gabriela Dan, Editor of Arta Albă

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