Strong demand for US soybeans has pushed the stock price higher. Wheat recovered from a sharp decline on Wednesday, November 15, but it remains to be seen whether that will also work in Europe.
After the major loss (Tuesday, November 13), soybeans managed to recover well on Wednesday. The price of the January 2018 contract is moving back above $9,70 per bushel. This increase is mainly due to technical reasons, but the high press capacity and good import expectations from China also support the market in the United States (US).
Wheat recovers from setback
The wheat price at the CBoT was also on the rise. The price recovered from the strongest decline since September. Egypt, the largest wheat importer worldwide, is in the market and it appears that the preference is for raw materials from the Black Sea region and Russia.
There are concerns about Egypt's import policy, because a court in the country has declared zero tolerance for mold. Furthermore, maize manages to close in the green again.
European prices are retreating
In Europe, the prices of wheat and corn are not going smoothly. Prices fell sharply on Wednesday. Wheat closed at €159,25 per tonne at the Matif, corn did €154,75. Export activity is crucial to clear current stocks, but Russia's record harvest is clearly getting in the way.
Currency-wise, things aren't going well either. The recovery of the euro against the dollar is a challenge for European companies. On Thursday, November 16, wheat opened at €159,75 per tonne, but quickly dropped by another quarter. Maize opened at €154,75.