October 27th

Market Report

Yesterday's session was animated in a market that is becoming a little more hesitant about current price levels, at the highest since 2008 for wheat, for example. Among the factors of uncertainty, the rebound of covid cases all over the world, especially in China and Russia, leaving doubts on the vitality and sustainability of the economic recovery.

On the international scene, the USA has sold 199,000 t of soybeans to Mexico. Egypt launched a tender in wheat for loading on December 1/10.

In corn, harvesting continues even if it is behind the average of the last 5 years. Yields are globally correct.

Wheat exports from the EU outside France, whose figures are still missing, stood at 8.99 million tons on October 24, compared to 7.23 million tons last year to date. Barley exports are at 2.86 million tons compared to 2.74 million tons last year. Maize imports are down to 4.10 million tonnes from 5.40 million tonnes last year.

Rapeseed is still up in the wake of canola, which set a new high yesterday in Canada.

The dollar is little changed this morning at 1.1600 against the euro and 69.50 against the ruble. The same is true for oil, which is fairly stable at 84.00 usd/barrel. U.S. oil inventories rebounded this week.

American market
Wheat prices gave up ground last night in Chicago, notably on profit taking by funds. Only spring wheat posted a 10-year high, as a result of last spring's water deficit.

Corn found support in the slowdown in harvesting linked to the current rains in the Corn Belt. However, this slowdown should be put into perspective, as 66% of the area was estimated to be harvested last Sunday, compared to an average of 53% over the past five years.

Soybeans were stable yesterday, but benefited from the support of the 199,000 t sale to Mexico.

Funds were net sellers in wheat yesterday for 4,000 lots and net buyers in soybeans for 1,000 lots. They were neutral on corn.