February 01st

Market Report

On Friday, China bought from the US a new record corn sale of 2.1 Mt. USA also sold 132 000 t of new crop soybean to China. The Chinese government on Friday sold nearly 2.2 million tonnes of wheat from its state stocks on its domestic market to meet internal.

During last week, more than 5 Mt of corn have been sold by USA to China, suggesting a likely upward revision of the export target by USDA in its next monthly report on Feb 9.

In Russia, following on from tariffs implemented on exports from February 15 and March, if prices continue to climb, authorities are thinking to set a tax system to limit the exports in the next season.

Russian exporters are rushing to get as much wheat out as possible before the introduction of export taxes on 15 February. In January, at least 3.3Mt of wheat have been exported.

This rate of exporting is 57% higher than the activity recorded in January 2020 but more importantly, it is higher than Russian operators had anticipated.

On a weather point of view, recent rains in Brazil are suggesting possible damages and delays in some regions as harvests are progressing.

The funds are currently holding record long positions in maize over 400,000 lots.