Markets remain firm but with prices up at contract highs demand is becoming limited. From a weather point of view, Western Europe is experiencing positive conditions. In South America, Brazil is facing strong rains, delaying soybean harvest works. In Black Sea, especially in Russia, frost damage has been noticed but in usual proportions for this period of the year.
Rains will stop in South America leading to harvest continuing and probably a sell off in prices due to the extra supply.
FranceAgrimer said that in France, 87% of soft wheat is in good to excellent conditions, 1 point higher from last week. This number must be compared with 64% last year to date. Winter barley is 83% good to excellent, unchanged from last week but much higher than last season (66%). Spring barley is planted up to 22% on Feb 22 vs. 17% last year to date.
Rapeseed prices retreated on the back of profit takings. Supplies remain very tight, limiting the downside potential for the moment.
On Friday, last trading day of February, US markets experienced some profit takings in a volatile context. The situation remains globally unchanged; supplies are strained, especially in soybean and corn.
March is a crucial month for operators, focusing on the estimations of planted area in the USA. They should touch a record high this season, except if climatic conditions are adverse.
Friday, funds were net sellers in 4 500 lots of corn, 3 750 lots of soybean and 7 000 lots of wheat.
The week should begin on a firm tone. The economic outlook should be underpinned by the massive stimulus plan of 1.9 trillion $ to support the US economy.