News Grain TA
Grain TA
Wheat was under pressure on both the Matif and CBoT last trading session. Support from the EU gives market players some confidence that Ukrainian grain will remain available. Agriculture Commissioner Janusz Wojciechowski said that the solidarity lanes are of great importance and that he is doing everything possible to keep them open. In addition, we are looking at how the higher transport costs associated with this can be compensated so that Ukrainian grain remains competitive. The EU is also lending a helping hand to repair damaged ports. The spring wheat tour in the US passed through North Dakota and the spring wheat yield there is slightly better than previously expected.
Maize has been dragged down by the wheat, partly due to developments in the Black Sea area. Figures on ethanol production were better than expected, but the market hardly reacted to that. 21 million barrels of ethanol were produced in the week ending July 1.094, the highest production in 11 weeks.
Soy was on the rise. The dry weather at the moment clearly weighs more heavily on the trade than the predicted precipitation next week. The US market also received a boost from 2 new orders for soy from the new harvest to an unknown destination. It is most likely China that has secured these orders for a combined 501.000 tons of soy. Buyers for soy in the US are more than welcome, especially now that prices in the US are still well above those of soy in Brazil.
Jurphaas Lugtenburg
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