The soybean listing on the CBoT in Chicago hit its lowest level in 10 years, before eventually rebounding sharply. Trade flows have changed due to the tensions in the market. There was also a small rebound in the wheat market.
Soybean prices reached their lowest level in 10 years. This was partly because the yields in the United States (US) are quite good. In addition, trade tensions continue to put pressure on the market.
US largest supplier in Europe
Brazil has now been dethroned as the largest supplier of soybeans to the European Union (EU). That place has been occupied by the US. This is partly due to a trade deal between the EU and the US, which states that the EU will purchase more soya in order to avoid import duties on European cars.
It also has to do with the fact that Brazilian soybeans have become more expensive, because China has bought half of Brazil's soybean production. According to Brazil's agriculture ministry, China purchased approximately 50,9 million tons of soybeans in the 2017/2018 season.
Bargain hunters for wheat
Because wheat prices on the CBoT in Chicago and Matif in Paris fell slightly, 'the bargain hunters' are seizing their opportunity. This is illustrated by the purchase of almost 0,5 million tons of wheat (via 2 tenders) by the most important GASC in Egypt.
Another factor contributing to this increase is Coceral's new forecast. This contains the estimate of the European yields reduced to 130 million tons, compared to a yield of 141 million tons last year.
Corn falls to new low
The price for corn fell to a new low last week (€175 per tonne). This is despite the fact that Coceral has also reduced its corn yield to 58 million tonnes. This was still 60 million tons last year. The fact that the corn quotation on the Matif in Paris is so low is partly due to the good yields in Ukraine.
Although the corn harvest in the Netherlands Although some progress has already been made, the weather in the region around the Black Sea and Baltic countries still influences the harvest. It is currently extremely warm in those countries, but yield expectations are still favorable. Only in Russia is a serious yield reduction for corn expected.