December 16th

Market Report

Algeria seems to want to bring down prices of French goods, despite its competitiveness, mainly for geopolitical reasons. It is probably about 700,000 t that would have been contracted yesterday between 372 and 376 usd / t depending on the size of vessels, with goods geographically ranging from Germany to the Baltic, through the Black Sea basin. Details were not provided. Argentina could also be retained for part.

From a chartist point of view, the break of the 280 €/t support on Euronext March maturity pushed the market down, testing its next technical point of 275 €/t on the March 2022.
According to Euronext, long positions on wheat on December 10 would be held up to 64.2% by non-commercials while commercials would hold 65.5% of short positions.

In Australia, the weather is becoming a little milder and therefore favorable for harvesting. This year's wheat production on this continent is expected to be at record levels, probably above 35 million tons.

As of December 12, EU exports of wheat to third countries stood at 13.11 million tons compared to 12.06 million tons last year. This figure probably still lacks a little more than 1 million tons to be allocated to France, whose statistics are difficult to obtain from customs. Imports of corn into the EU stood at 5.94 million tons, down from 7.77 million last year.

Rapeseed lost ground yesterday, mainly in the wake of palm, canola, and oil.

Imports of rapeseed in Europe stood at 2.08 million tons on December 12 against 3.23 million last year to date.

The dollar remains firm this morning, posted at 1.1290 against the euro and 73.70 against the ruble. Oil rebounds slightly to 71.50 usd/barrel.

American market
Very sharp decline in wheat prices last night on Chicago on lack of competitiveness of U.S. produced goods internationally, coupled with chartist reasons and sales from funds. The Australian crop is progressing with better weather conditions which will inevitably lead to have a major competitor with the latter.

Soybeans found support in the NOPA figures which showed a drop in soybean oil stocks at the end of November.

Corn also gave up some ground yesterday, following wheat and a drop in ethanol production, posted last week at 1.087 million barrels and a rise in stocks to the highest since last August at 20.883 million barrels.

Funds were net buyers yesterday on 1,000 lots of soybeans but net sellers on 5,000 lots of corn and 20,000 lots of wheat.