European Grain Markets
- The October USDA report contains some bullish numbers, leading to a positive close on the grain markets yesterday.
- The solid performance of MATIF is in no small part due to a renewed appreciation of the dollar, supported by accelerating US inflation again and fears that interest rates will remain high longer than desired.
- Almost entirely at the expense of soybeans, oilseed production in the World is down. Canola is also down a little, while the sunflower harvest is up because of Argentina.
American Grain Markets
- The appreciation in Chicago grain markets yesterday was driven entirely by corn and soybean prices, insofar as both markets are receiving lower than expected yields, production and stocks.
- However, US wheat production and stocks are higher, so the appreciation in this market is more a positive reaction to good news for spring crops.
Black Sea Grain Markets
- Another Egyptian auction adds to the “cloudy” mood of wheat, as the “price floor” from Russia was officially lowered by $10 to $260 yesterday.
- Apart from Russia, which traded 300kmt, wheat for Egypt is also sold by Romania – 120kmt and Bulgaria – 50kmt, for which the agreed prices are still nominally up by $2–5 compared to the end of September.