The recent downward movement is pushing buyers to come back on the market through tenders.Yesterday, Pakistan finalised a purchase of 200,000 t of wheat.
Harvests is adding some supplies and traders will monitor the possible return of Ukrainian origins to the international market in the coming weeks. Since the agreement signed on Friday, operators are cautious. The first shipments and the arrival of new cargoes will be scrutinised to appreciate the actual implementation of the safe corridors.
Cereals prices on Euronext rebounded yesterday after the fall recorded at the end of last week. However, yesterday's gains did not compensate the whole recent decline. Hot weather in Europe has pushed the European crop monitoring service MARS to cut yields' potential of spring crops in Europe. The forecast for corn is down from last month at 7.25 t/ha, i.e., almost 8%. The situation is similar for sunflower, where the estimated yield is 2.18 t/ha compared to 2.37 t/ha last month.
Mixed session in Chicago yesterday. Traders are anticipating a quick resumption of ports' activity in Ukraine even if uncertainties remain on the conditions and the respect of the deal. Prices have rebounded from Friday's sharp decline.
The most significant increases have been observed in spring crops amid expectation of new crop condition estimates. After several sessions of active sell-offs, funds were buying again yesterday. The USDA confirmed the fears in corn and soybeans by reporting a drop in ratings compared to last week. Corn crops are rated as "good to excellent" at 61%, down by 3 points, and soybeans are down by 2 points at 59%.
The evolution of weather models remains essential to follow. Temperatures are expected to rise and the weather to be drier at the beginning of August.