February 28th

Market Report

The markets are in turmoil and the volatility is unprecedented as seen in the fluctuations of the last few days and again in the pre-opening hours of Monday morning. This has led to a number of elevators no longer being able to display quotations. Caution is required when quoting in this context, as prices can change by several percent in the space of a few minutes.

The markets fell sharply on Friday, the eve of the weekend, when the financial sector sold off a number of positions before the weekend in a context of uncertainty as to the evolution of the current crisis situation. A highlight this morning was the fall of the rouble following the decision to disconnect a number of Russian banks from the international transaction system known as SWIFT.

World trade in agricultural commodities is highly disrupted given the weight of the Black Sea basin. Force majeure clauses could be invoked in future shipments. Egypt reissued a tender on Saturday with results expected today. It will be interesting to see what offers might be made in this context for April loading.

Shipments from Ukrainian ports are suspended and those from Russia largely disrupted. Shipments from Romania are continuing, but in a context of uncertainty given the risks associated with navigation on the Black Sea.

Corn prices on Euronext are rising sharply on nearby deliveries, with strong demand noted in particular from Spain.

The rouble fell heavily this morning and the dollar is firm against the euro at 1.1150. Oil in New York is up to 96.50 usd/barrel.

American market
Very sharp decline in prices on Friday in Chicago, erasing in part the gains of Thursday. However, in the pre-opening period, the markets are rising again, confirming the degree of uncertainty currently affecting the commodities markets. The CME is once again raising its intraday trading range to 1.50 usd/bushel for Monday wheat.

Friday, funds were net sellers in 45,000 lots of corn, 30,000 lots of soybeans and 25,000 lots of wheat.