European Grain Markets
- Last Friday, grain markets on MATIF closed weakly another poor week in which the wheat futures lost €1.25, corn €1.50 and canola €15.50.
- As the latest USDA report showed, fundamental factors still remain in support of the bears, and these are fully confirmed by technical analysis.
- Only excessive rainfall in Western Europe, already delaying the sowing of winter crops in France, is supporting the bulls. On the other hand, rainfall is welcome everywhere in eastern Europe.
American Grain Markets
- Higher-than-expected wheat inventories in the US, major exporters, and the world are good reasons for weakness in the Chicago wheat market, which otherwise closes the week with minimal gains.
- With more negative news for corn prices, the market fell on Friday, and for the week only soybeans renewed their appreciation, supported entirely by the weather in Brazil.
Black Sea Grain Markets
- The combination of increased harvests and exports of wheat and corn from Russia and Ukraine is unequivocally bad news for prices in the region’s grain markets.
- Also, bad news for bulls in the long term is this week’s predicted new rains in the driest regions of southern Russia and Ukraine and eastern Romania and Bulgaria.