June 01st

Market Report

Grain prices fell sharply yesterday as the United Nations and Russia continued to advance in their discussions to release Ukrainian stocks and facilitate Russian exports. Egypt is taking advantage of this downturn to launch a call for tenders for deliveries over two periods, between 20 and 31 July, then between 1 and 10 August. The evolution of prices remains strongly dependent on progress on the geopolitical front and on flows from the Black Sea basin, with its share of uncertainties. On the international scene, apart from the Egyptian call for tenders, the purchase by Pakistan of 500,000 t of wheat could be noted.

The EU exported 24.63 million tonnes of soft wheat on 29 May, compared with 24.72 million tonnes last year. Exports of barley stood at 6.78 million tonnes compared to 7.12 million tonnes last year. Corn imports are up to 15.11 million tonnes compared to 13.89 million tonnes last year on 29 May.

Rapeseed continues to recover. New crop canola prices were strengthening yesterday in Canada, with planting delays still caused by rains. Rapeseed imports into the EU stood at 4.89 million tonnes as of 29 May, compared to 5.97 million tonnes last year to date. Palm oil prices are little changed this morning in Kuala Lumpur. Note the easing of sanitary measures in Shanghai.
Crude oil prices are down a little this morning at 115 $/barrel in New York and the dollar is slightly stronger at 1.0710 against the euro.

American market
The USDA reported last night that corn plantings were 86% complete, close to the 5 year average of 87%. Soybean plantings have also caught up with delays, amounting to 66% of the area done compared to an average of 67%. Spring wheat is still significantly behind schedule, with only 73% of the area sown, compared with 92% on average to date.

The crop rating for winter wheat this week shows 29% of plants as good to excellent, a level that remains low as a result of the drought.