Yesterday's rebound in oil prices provided a support factor for other commodities after last week's decline. At the same time, the Eurodollar strengthened, rising back above 1.01 in anticipation of the European Central Bank's meeting scheduled on Thursday. On the export side, another meeting between Ukraine, Russia, Turkey and UN representatives is expected this week to reach an agreement on the resumption of export activity from Ukrainian ports.
In France, the hot weather remains a concern for the crops, including corn. Prices for corn have risen for both old and new crops. Operators are still cautious about the export activity from Ukraine even if an agreement is reached soon. In straw cereals, harvesting is progressing rapidly despite the stoppage of work scheduled during the day to avoid fires in some areas.
Prices in Chicago rebounded sharply yesterday. Wheat and soybean erased the decline recorded at the end of last week. The GASC's return to buying, with a preference for wheat other than from Black Sea and Europe, is a supportive factor for US wheat. As a reminder, in this period of winter wheat harvest, prices in Chicago are trading on prices equivalent to those at the end of February, i.e. the level before the beginning of the conflict between Russia and Ukraine. The September 2022 expiry rose back above the $8/b threshold yesterday.
Nevertheless, the weather conditions remain a crucial element to follow, especially for corn and soybean which have reached the flowering stage. The crop condition figures released yesterday by the USDA do not yet show any significant deterioration compared to the previous week, with 61% of soybean and 64% of corn still rated as "good to excellent".