Yesterday's session on Euronext was marked by a clear rebound in prices, offsetting the downward movement recorded at the end of last week on both cereals and rapeseed markets.
The evolution of the Russian-Ukrainian conflict is focusing the interest of operators on the possible resumption of port export activity from Ukraine. For the moment, the Ukrainian authorities are highlighting the risk of a surge in stocks due to the approaching harvest. Available stocks could reach 75 Mt of grains by the autumn, according to President Zelensky. The capacity of Ukrainian exporters to sell their products is a major uncertainty and will drive prices' evolution.
In France, the long weekend was marked by bad weather and heavy rain in several production areas. The impact of the rainfall has yet to be quantified and is likely to lead to heterogeneity in crops conditions. Significant hail damages have been observed.
Grain prices in Chicago rebounded sharply yesterday, offsetting the decline of recent sessions. Prices are back to testing technical resistance zones amid numerous questions about Russia's willingness to facilitate the resumption of exports from Ukrainian ports.
In the US, operators are following with interest the progress of sowing. They are showing a clear progression in corn. The delay of the last few weeks has been erased, with 94% of the area sown, compared with an average of 92% over the last five years. The condition of the corn crop is judged to be "good to excellent" at 73% of the area. In soybean, the progress of sowing is also reassuring, with 78% of the area now planted.
In wheat, in parallel with the spring sowings which are still progressing, the winter wheat harvest is beginning with 5% of the area cut. Yields are not yet significant, especially as the first harvested areas have suffered from the very dry weather of the last few months.