European Grain Markets
- MATIF wheat rose for a second straight session yesterday after a prolonged decline in recent weeks. The front-month December futures managed to close at 232.25 EUR/tonne, while the March futures closed at 5.25 EUR/tonne currencies.
- Renewed November demand and very wet weather in parts of Western Europe, portending negative consequences for the sowing season, supported prices. Corn also managed to rise following wheat.
- Oilseed rape rose, supported by canola and crude oil. Sub-optimal sowing conditions in Europe are also having an impact. It should be noted that grains in Paris managed to rise despite the euro’s surge against the dollar, which, all other things being equal, should lower prices in Europe.
American Grain Markets
- In Chicago, wheat rose for the second consecutive session, with the main leading forces being the covering of short positions in the market as well as the weakening dollar. New forecasts of a production decline in Argentina provided further support.
- Unlike wheat, corn continued to fall and closed in the red again yesterday on harvest pressure and weak export sales.
- Soybeans are on track for another week of gains following news of a meeting between US and Chinese officials to increase trade. According to analysts, China will continue to import large quantities of soybeans in the fourth quarter of 2023, reaching a new record high.
Black Sea Grain Markets
- Exports of agricultural products from Ukraine increased by 15% to 4.8Mt in October compared to September thanks to the new “corridor”, representatives of agribusiness in Ukraine report. Grain exports amounted to 2.5Mt and vegetable oils equalled 0.5Mt. However, exports remain far below optimal levels for the country to be able to export the 50Mt of surplus grain.
- On the other hand, Russia has exported 1.12 Mt of maize since the beginning of the season, increasing its exports 4 times compared to the previous year, successfully covering part of the decline in Ukraine’s exports. Overall, the Russian Federation has exported 32% more grain from the beginning of the season to 1 November compared to the previous season, reaching a volume of 26.5Mt.