Markets are still volatile, divided between fundamentals that do not particularly plead for a rise in wheat prices, and geopolitics that lead to fears of a disruption of exports in the event of conflict in Ukraine.
Internationally, Algeria is launching a call for tenders for wheat, a tender that will be closely monitored given the geopolitical risks. The French origin has lost competitiveness recently in relation to the Black Sea. Turkey is also buying 255,000 t of feed barley.
The weather conditions throughout Europe are considered satisfactory for the moment, allowing us to remain confident about the condition of the crops. The first applications of nitrogen fertilizers are beginning. It should be noted that the first prices for nitrogen for the 2023 harvest are appearing in a context of strong uncertainties on the evolution of prices.
Yesterday's session in Chicago was mixed, with profit-taking mainly on soybeans following the strong advance of the last few days.
The market also gave up some ground following the expected rains in Argentina.
According to AgRural 24% of soybean areas in Brazil are now harvested against 9% last year to date. It should be noted that in Mato Grosso 50% of the area is now harvested.
Soybean export inspections this week were within the range of expectations at 1.15 million tons, while corn inspections were 1.46 million tons above traders' expectations. Wheat exports were 435,188 MT, within the range of expectations.
The evolution of prices will be very dependent on the situation in the Black Sea basin, a situation that is difficult to assess at this stage.
Funds were net sellers yesterday for 8,000 lots of soybeans but net buyers for 4,000 lots of corn and 1,500 lots of wheat.
Rapeseed prices are still volatile and palm oil is slightly up this morning in Kuala Lumpur. Canola was losing some ground yesterday in Canada.