Soy and corn prices are rising again, partly due to new rumors of additional purchases by China. The price of wheat is on the upswing, but it is beginning to falter.
The soy quotation on the CBoT in Chicago is rising after China purchased additional product from the United States (US). Chinese importers bought an unknown quantity of American soybeans on Tuesday, December 18. This after they last week also purchased more than 1,5 million tons.
Drought in Brazil
In addition, the drought in the Brazilian states of Paraná and Mato Grosso is also important. This could cause Brazil's soybean harvest to be smaller than initially thought; this is currently estimated at between 120 million and 123 million tonnes.
On the CBoT, the price of corn shows a clear increase, mainly due to the hope that China will buy more American corn. The quotation on the Matif in Paris also shows an increase, reaching €18 per ton on Tuesday, December 177.
Revival of wheat quotation
It has been clear since December 10 that Russia will not maintain the current export pace revival on the wheat quotation. This has also created a fixed undertone in the quotations. If this trend continues in the second half of this season, it could have a favorable effect on sales of European wheat.
A meeting is scheduled for Friday, December 21, with the Russian Ministry of Agriculture and several grain exporters to discuss the situation. As a result, the wheat markets could show interesting developments. However, this could not prevent the odds from currently faltering. This is partly caused by the low exchange rate of the ruble compared to the dollar.