The US futures market CBoT has clearly slowed down pending new information. Export figures and new revenue figures must provide an explanation for the market and which prices are associated with this. In Europe we notice little of this hesitation.
While the European futures market for corn and wheat rose again on Monday, October 11, the Americans took a step back. The Chicago stock exchange remains closed today due to Columbus Day. It is mainly Thursday, October 14, that grain traders and analysts are looking at. The Wasde report will then be published for October. The US Department of Agriculture (USDA) will then provide more clarity about corn and soy yields.
Harvest is going smoothly
Farmers in the Midwest have had a busy week with a lot of harvesting. A rain front will probably provide some calm in the coming days, but other than that the combination is running smoothly. If the figures from the yield meters are taken into account, it appears that the yields are not disappointing on average. This also contributes to a hesitant course for all grains. Wheat falters for a while because sowing also stops. Growers first wait for more moisture.
On Friday, October 8, the CBoT closed at $269,70 for December wheat delivery. On Monday it was almost $278 per tonne for wheat, while corn lost $4 to close the week at $208,85. American exports are somewhat disadvantaged by the high exchange rate of the dollar. We see this especially in the wheat market, where the EU does good business. The euro is favorable for exports and now that Russia is increasingly forced to withdraw, buyers are ending up in Europe. This is clearly noticeable in the prices.
Record high oil prices
For soy, the price formation of vegetable oil is increasing. Soya also benefits from this. This market has been moving sharply upwards all year and this movement is not over yet. For example, palm oil prices reached a record high at the end of last week, as its availability decreases. This has consequences for other oilseeds such as soy, but also rapeseed. The latter is experiencing an unprecedented price increase, the ceiling of which has not yet been reached.
For the Americans, a lot depends on demand from China. In contrast to last season, the country is now heading for a record harvest of grain maize. However, that could literally fall into the water, because the conditions surrounding the harvest are currently poor. The country experiences a lot of rainfall in the north, making harvesting and drying difficult. In addition, drying is made more difficult by sky-high energy prices and poor availability.