Growing listings on Euronext

• The week started yesterday on the rise for all products listed on Euronext. The decline of euro/dollar to 1,0870 and the firmness of oil at 82 dollars/barrel in New York formed the background of this trend.

The wheat market is influenced by the resurgence of tensions over port facilities in Odesa seen late last week, reminding us that geopolitical risk is still present in the grain market. In France, repeated bad weather continues to have a negative impact on crops.

Corn is following wheat's lead, extending its sharp rally that began last week. Stabilizing prices in the Black Sea bring more calm to the European grain market, even as competition remains fierce on the international stage.

In Ukraine, the Ministry of Agriculture forecasts a decrease in the area cultivated with corn for the 2024 harvest to 3,86 Mha, compared to 4,04 Mha last year. The area under sunflower is also projected to decrease to 5,29 Mha from 5,30 Mha in 2023.

On the other hand, spring barley plantings are expected to increase to 943.000 ha from 821.900 ha last year, and soybeans to 2,20 Mha from 1,78 Mha in 2023.

Rapeseed continues to be boosted by higher vegetable oil prices in Europe, which in turn benefit from the recent increase in palm oil prices.

The price of wheat on the Chicago Stock Exchange influenced by the tensions in the Ukrainian port of Odesa

Program CéréObs of FranceAgriMer estimates the proportion of wheat in the state "good to excellent" at 66%, up from 68% the previous week and 95% a year ago. The same is true for winter barley at 68% standing "good to excellent", compared to 69% the previous week and 92% a year ago. As for spring barley sowings, 39% were sown, 11 percentage points higher than the previous week, compared to an average of 83% year to date.

The Chicago wheat market also reacted to the new Ukrainian port tensions. The return of a wave of winter weather is being monitored in the Midwest, where winter wheat crops are earlier than expected.

For now, for Kansas and Texas, the proportion of wheat considered "good to excellent" increased by another 2 points in the last week to 55% and 46% respectively. Only Oklahoma dropped 3 points on the week to 61% "good to excellent".

Friday, The European Commission proposed new support measures for producers, such as the introduction, after 2024, of mandatory, rather than voluntary, fallow of cultivated land and the introduction of restrictions on imports of agricultural products from Russia.

This week, the market will be watching the auction OAIC from Algeria for the purchase of wheat for the period April-June in the ports of Tenes and Mostaganem. OAIC is also buying durum wheat for April.

Bursa Euronext on 18.03.2024 (GMT+1)

Wheat (€/t)

Maize (€/t)

Rapeseed (€/t)

Article written by Gabriela Dan, Editor of Arta Albă

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