January 11th

Market Report

European prices were firm on Friday for all products due to new buying interests on the international stage. The feed barley soared, probably on the back of Chinese interests. China bought 204 000 t of US soybean and Japan 120 000 t of milling wheat sourced from the US, Canada or Australia. The Chinese government released about 2 Mt of wheat from its strategic reserves to supply its domestic market and try to curb prices’ inflation.

Argentina has lifted its ban on maize exports, but still limits its exports to 30,000 tonnes a day. This helped to ease cereals prices' rise in Chicago on Friday, but failed to reverse the bullish trend in anticipation of tomorrow's USDA report.

Friday, funds were net buyers in 5 000 lots of corn and 15 000 lots of soybean. They were net sellers in 3 000 lots of wheat.

The Black Sea basin will face an important cold snap in coming days. By the end of the week, temperatures should drop below -25°C in the Russian central district and in the Volga Valley. The snow layer should increase and reach about 30 cm in these areas.

This cold weather will also hit Ukraine, but in lesser proportions. However, temperatures should fall under -15°C. The snow protection is minimal and could become a matter of concern for the operators.