The harvest delay in Western Europe and of course all the worries about the recent bad weather have largely supported prices throughout the past week. However, the return of prices above 210 €/t on Euronext was mainly due to the upward trend of the three wheat futures contracts listed in the US. The continued deterioration of US and Canadian spring wheat is gradually stretching the entire North American wheat S&D balance.
To note on the oil market, the agreement found on Sunday by the OPEC+ members in order to increase the production from August.
For a change, wheat has been the most bullish product in Chicago since Monday's USDA report. SRW wheat has posted its biggest weekly gain since June 2015, despite very high winter wheat yields. Both the Chicago and Kansas City markets are just following the Minneapolis rally. Spring wheat degradation on both sides of the U.S.-Canadian border continues to fuel this upward spiral.
The persistence of a dry weather over the north-western part of the Corn Belt remains a support for corn and soybean prices. The soybean is also underpinned by a renewed pressure on soybean oil in the wake of the rise of canola in Canada.
Ukraine and Russia are 25% and 10% through winter barley harvest with yields well above average - 4.3 t/ha compared to an average 3.5 t/ha.
With harvest starting in earnest it will be interesting to see what quality and yields are like. Will you be combining this week?