European Grain Markets
- The new week started in scarlet red for the bulls on all grain markets in Europe. After making weekly highs at the end of last week, the markets reversed direction on Monday. The most-traded September wheat futures in Paris closed yesterday at 241.5€/t after opening at 246€/t, with negotiations over the future of the grain corridor still ongoing.
- Corn also reported a decline on Monday, influenced by wheat. Matif’s rapeseed, which traded in a small range the previous week, managed to rise to a weekly high of 448.50 €/t on Friday, but fell to 429 €/t yesterday despite a slight jump in crude oil prices.
American Grain Markets
- Grain markets in Chicago reported losses yesterday similar to those in Paris. 44% of US wheat was in poor/very poor condition – the worst week since 1996, which ultimately proved not to be enough, and the bears prevailed at CBOT yesterday.
- Corn on Friday closed at a weekly high, which it managed to maintain yesterday, but a faster-than-normal planting campaign depressed prices.
- Soybeans also lost strength and closed in the red yesterday, with seeding advancing 16% for the week to 35% ahead of the transition year at 24%.
Black Sea Grain Markets
- As before any corridor renewal, Russia is keeping all grain market participants on hold and for now negotiations appear to be at an impasse. With moves to negotiate dwindling, this time the Russian side is effectively blocking the corridor by refusing to list incoming ships in Istanbul, according to Ukraine.
- The elections in Turkey on 14 May, which is the main mediator between Ukraine and Russia, also contribute to some uncertainty in the region and the future of the corridor.