European Grain Markets
- Despite unequivocal weakness in Chicago grain markets, wheat and corn at MATIF on Friday continued to rise, supported by a weak euro and improving competitiveness of EU exports
- Rapid wheat and barley sowing and corn harvest in France are somewhat of a concern, as is the heavy rainfall that has begun across most of Europe
- In contrast to grains, Matif rapeseed has been generally depreciating since early September, to which weakness in canola and most vegetable oils, plus the current rainfall, are certainly contributing
American Grain Markets
- After Thursday’s sharp appreciation, the Chicago wheat market is down substantially on Friday, but all “internal” indicators remain bullish, so we’re likely seeing only “technical maneuvering”
- The same can be said for the corn market and to a lesser extent soybeans, which will likely be supported this week by rainfall on the US harvest and again drying weather forecasts in South America
Black Sea Grain Markets
- As much as exports from Western Europe are becoming more competitive, last week’s international auctions again showed that supply from the Black Sea remains the best positioned, with sales of Russian, Romanian and Bulgarian wheat in Egypt