An Egyptian tender for wheat has particularly stirred the American futures market. The Ukrainian registration in particular is viewed with suspicion. The UN welcomes Ukraine's efforts to gain access via the Black Sea, but does not think this is a structural solution. The corn market is getting a boost from the positive mood in the oil market.
The December wheat contract on the Maitf closed yesterday €0,75 higher at €241 per tonne. Wheat actually declined on the CBoT. The December contract fell 1,6% to $5.79½ a bushel. Corn showed a small increase, adding 0,7% to $4.83¼ per bushel. Soybean, as is almost usual, moved mostly sideways last year, closing ½¢ higher at $13.03¼ per bushel.
A tender for wheat from the Egyptian state buyer Gasc set off tongues yesterday. In particular, Ukraine's tender at $239 per tonne FOB (delivered on ship) is very competitive compared to the other tenderers. The Ukrainian tenderer has selected Chornomorsk as the port of delivery. Although several ships have already left this port, it is doubtful whether there are any shipowners who would even dare to transport for this order.
The Russian bidders stuck to the Kremlin's floor price and were unanimous at $270 per tonne. European traders were largely in the $255 to $260 range. After the tender closed, Gasc announced that it had committed 170.000 tons. Two 60.000 tons from Romania from Cargill and Viterra and one 50.000 tons from Bulgaria from Buildcom, all for $255 per ton FOB. Strangely enough, the CBoT reacts more nervously to the relatively competitive registrations than the Matif.
The UN made itself heard again yesterday about the Black Sea grain deal. According to the UN, the humanitarian corridor that Ukraine is now working on is not a real alternative to the grain deal. “We see the alternatives being explored in a very positive light because it is important to get grain onto the world market,” Rebeca Grynspan, involved in the grain deal on behalf of the UN, told Reuters. The risks associated with these alternative routes are greater. “The only way to really remove the risks and really stabilize the situation is an agreement that is supported by all parties,” says Grynspan.
Aid for corn
Corn received support from the rally in crude last trading session. The bullish sentiment in the energy market seems to be spreading somewhat to corn according to some analysts. This is further reinforced by the figures on ethanol production. In the week ending September 22, 1.009 million barrels of ethanol were produced in the US. That is 3% more than a week earlier and no less than 18% more than in the same week last year.
The European rules on deforestation-free soy are being criticized by Brazil, Paraguay and Argentina. The three countries have written a manifesto in which they say that European rules seriously disrupt world trade. They further accuse the EU of a disguised form of protectionism. Traders in the US have previously been much less critical of European rules and mainly see this as an opportunity for the North American market.