Market update week 29
The downward spiral in which funds are building record positions has come to a halt, but the momentum has not yet fully reversed. Support is weak and weather in the Corn Belt will be one of the crucial factors in the coming days. While below-season average temperatures are not harmful to crops, it is the possible arrival of a derecho that is under scrutiny. This weather phenomenon is characterised by strong gusts of wind, which in the past have toppled some of the US maize, making it difficult to harvest.
The downward spiral in which funds are building record positions has come to a halt, but the momentum has not yet fully reversed. Support is weak and weather in the Corn Belt will be one of the crucial factors in the coming days. While below-season average temperatures are not harmful to crops, it is the possible arrival of a derecho that is under scrutiny. This weather phenomenon is characterised by strong gusts of wind, which in the past have toppled some of the US maize, making it difficult to harvest.
Céréobs report from FranceAgriMer:
Soft wheat: 57% “good to excellent”, down 1 point from a week ago, compared with 80% last year.
Durum wheat: 62% “good to excellent”, 2 points less than a week ago, compared to 68% last year.
Spring barley: 69% “good to excellent”, unchanged over the week, compared to 73% last year.
Maize: 83% “good to excellent:, up 1 point over the week, compared with 82% last year.
Céréobs report from FranceAgriMer:
Soft wheat: 57% “good to excellent”, down 1 point from a week ago, compared with 80% last year.
Durum wheat: 62% “good to excellent”, 2 points less than a week ago, compared to 68% last year.
Spring barley: 69% “good to excellent”, unchanged over the week, compared to 73% last year.
Maize: 83% “good to excellent:, up 1 point over the week, compared with 82% last year.
The return of international buyers was viewed positively by market participants at a time when prices of all origins are on a downward trend. The following conclusions can be drawn from the GASC tender:
First, it is worth pointing out the large quantity of wheat purchased, 770,000 tonnes. Second, the final purchase price of $221/t FOB was low compared to the price initially proposed, showing how important it was for market participants to meet the demands of the world’s largest importer. Finally, with 12 of the 13 vessels under contract, Russia continues to exert pressure on world prices, especially in France.
The return of international buyers was viewed positively by market participants at a time when prices of all origins are on a downward trend. The following conclusions can be drawn from the GASC tender:
First, it is worth pointing out the large quantity of wheat purchased, 770,000 tonnes. Second, the final purchase price of $221/t FOB was low compared to the price initially proposed, showing how important it was for market participants to meet the demands of the world’s largest importer. Finally, with 12 of the 13 vessels under contract, Russia continues to exert pressure on world prices, especially in France.