Cereal prices rose again on Friday, in a context of sustained international demand. Despite the poor quality of the French wheat crop, China is seeking French wheat. Indeed, the country has reduced its requirements, especially on the specific weight. After last week's break of the 250 €/t on the December Euronext delivery, buying interest remains high. Rumours of new export restrictions that could be imposed by Russia are also supporting prices.
On the international market, Japan bought a little more than 113 000 t of milling wheat from the USA or Canada. South Korea bought 60,000 t of corn. Algeria is launching a wheat tender for response tomorrow and shipment in November.
Fertilizer supply, especially nitrogenous fertilizer, remains a major concern for French producers, with prices soaring.
Rapeseed continues to climb, setting a new record at 619.50 euros per tonne for November on Euronext. This morning, the market should still find support in the pre-opening firmness of soybean, but also in the rise of palm and oil. According to the FOP, rapeseed areas in France could increase by 15-20% compared to last year.
Wheat prices in Chicago surged again, technically supported by the break of the 7.10 usd/bushel resistance on the December maturity. However, a fierce competition from Australian origins, where the crop is expected to exceed 30 Mt, should become soon an issue.
Corn was slightly down due to a growing harvest pressure.
Traders will become increasingly cautious ahead of the September 30 report on quarterly stocks.
Funds were net buyers on Friday in 4,000 lots of wheat and 1,000 lots of soybean. However, they were net sellers in 1,000 lots of corn, due to harvest pressure.