News Grain TA
Grain TA
The wheat market came to a standstill yesterday with a small downward correction in Paris and a plus in Chicago. There was little news from the Black Sea area, but there is still a lot of fear after the Russian attacks on the Ukrainian transhipment facilities on the Danube. The latest news is that a Romanian ship was damaged during the drone attack on Monday. Insurers are taking another critical look at the policies and asking whether ships in the area can still be insured. Russian media announced yesterday that Putin will hold a summit with 17 African leaders on Friday on how to ensure grain supplies for Africa without the grain deal. Wheat yields in Russia are good and Moscow has often hinted that Russia can absorb the loss of grain from Ukraine.
Maize took a step back yesterday. The state of corn in the US remained unchanged in the Crop Progress report and therefore did not really move the market. Argentina has extended the arrangement that allows dollars to be exchanged for pesos at a favorable rate (approximately 25% above market value) for corn exports by one month. Today the new figures on ethanol production will be announced. It is expected that less corn will be processed into ethanol.
Soy traders also keep a close eye on developments in the oil market. Today, figures on the production of biodiesel are also being released. There are also plenty of speculations about China's purchasing appetite. The country has already secured 4,5 million bushels from the US this week and additional orders would not surprise market players.
Jurphaas Lugtenburg
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