Market update week 5
Somewhat drier and warmer weather in Argentina and southern Brazil. February weather is crucial for 60% of Argentina’s maize crop. The onset now seems too dry and warm. Last week, maize condition already fell a little from 46% good/excellent to 40% g/u.
Sowing of the 2nd maize crop (Safrinha) in Brazil is progressing smoothly with 10.3% in the ground on 27/01. Last year this was 3.9%. In the Brazilian state of Parana, sowing is sitting at 22%, this is said to be the fastest rate in the last 5 years.
Somewhat drier and warmer weather in Argentina and southern Brazil. February weather is crucial for 60% of Argentina’s maize crop. The onset now seems too dry and warm. Last week, maize condition already fell a little from 46% good/excellent to 40% g/u.
Sowing of the 2nd maize crop (Safrinha) in Brazil is progressing smoothly with 10.3% in the ground on 27/01. Last year this was 3.9%. In the Brazilian state of Parana, sowing is sitting at 22%, this is said to be the fastest rate in the last 5 years.
Oil continues to rise despite the rising $. With Brent at $83.18 and WTI $78.184, they were at their highest point this week, since 30 November 2023. Middle East tensions finally seem to be seeping into the market. Last weekend, there were once again escalations. First there was an attack on an oil tanker (Marlin Luanda) and later a US base was attacked in Jordan/Syria resulting in deaths. Judging by the political tendency, there is no de-escalation at all yet.
Oil continues to rise despite the rising $. With Brent at $83.18 and WTI $78.184, they were at their highest point this week, since 30 November 2023. Middle East tensions finally seem to be seeping into the market. Last weekend, there were once again escalations. First there was an attack on an oil tanker (Marlin Luanda) and later a US base was attacked in Jordan/Syria resulting in deaths. Judging by the political tendency, there is no de-escalation at all yet.
On Euronext Matif, new recent lows were observed this week. Wheat finished at €207.50/t March 2024, while corn traded at €177.50/t. To discover such prices, we have to go back to October 2020 for corn and July 2021 for wheat. Whether we are discussing corn or wheat, the circumstances are essentially the same: low levels of domestic consumption in Europe, a depressed international market as a result of both strong selling pressure from Black Sea origins and a lack of new demand.
On Euronext Matif, new recent lows were observed this week. Wheat finished at €207.50/t March 2024, while corn traded at €177.50/t. To discover such prices, we have to go back to October 2020 for corn and July 2021 for wheat. Whether we are discussing corn or wheat, the circumstances are essentially the same: low levels of domestic consumption in Europe, a depressed international market as a result of both strong selling pressure from Black Sea origins and a lack of new demand.