Grains - Grain Products

Cereals daily: markets start weaker in the morning

June 17, 2020 9:11 AM, Der AUDITOR
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FRANKFURT/PARIS. Good weather conditions and less exports are causing prices for wheat and corn to fall slightly.

Foreign exchange and crude oil market

The euro exchange rate weakened slightly. The impetus came from Washington, where the Trump administration is preparing a massive infrastructure package of almost USD 1 billion for release in October. In the run-up, higher liquidity in the US markets is leading to better sales expectations. On the other hand, there was little attention paid to positive economic news from Germany. The ZEW Indicator of Economic Sentiment improved for the third month in a row in June.

Foreign exchange market

Euro exchange rate

1.1272

-0.6 %

Deutsche Bank

 

Crude oil market

Brent

40.6

2.2 %

WTI

37.8

2.1 %

Crude oil trade

Wheat market

Wheat had a weak start to the new trading day. Better weather conditions with sufficient precipitation in the Midwest of the USA, Western Europe and the Black Sea region drove prices downwards. In Saudi Arabia, the state-owned SAGO bought a good 1.08 million metric tonnes of feed barley at a price of USD 198.91 per metric tonne Cost & Freight. According to the trade, the main supplier is Glencore. Taiwan bought 80,000 metric tonnes of milling wheat from the USA and in addition 76,000 metric tonnes from the USA and Australia. In France and Southern Germany, the feed barley harvest could start next weekend after furhter highs in weather. 

Wheat (front dates)

CBoT (USD/bu)

492.50

-2.1 %

MATIF (EUR/mt)

179.75

-0.9 %

Black Sea region (USD/mt)

200.50

-0.8 %

Wheat spot market

Milling wheat (12/220/76)

Parity

EUR/mt

Diff. EUR/mt

Rouen, FOB

181.00

-3.00

Creil, FOB

171.00

-3.00

Hamburg, DDP

198.00

0.00

Rhineland, DDP

199.00

0.00

Neuss, DDP

193.00

0.00

Upper Rhine Regioin, FOB

190.00

0.00

Feed wheat (72/73)

Netherlands, CIF

200.00

0.00

South Oldenburg, DDP

200.00

-2.00

Westphalia, DDP

199.00

-1.00

Upper Rhine Region, FOB

190.00

0.00

Trade sources

Corn market

Corn had a weaker start to the new trading day in the USA and almost unchanged in Western Europe. Better weather conditions with sufficient precipitation in the Midwest of the USA, in Western Europe and on the Black Sea caused prices to fall or develop moderately. The feed barley harvest, which begins next weekend in France and southern Germany after the influence of a high-pressure area, could also put corn under some pressure.

Corn (front dates)

CBoT (USD/bu)

327.25

-1.7 %

MATIF (EUR/mt)

165.50

0.1 %


Corn - physical market

Grain maize (commercial)

Parity

EUR/mt

Diff. EUR/mt

Rouen, FOB

160.00

0.00

Creil, FOB

186.00

0.00

South Oldenburg, DDP

190.00

0.00

Westphalia, DDP

192.00

0.00

Neuss, DDP

184.00

0.00

Upper Rhine Region, FOB

182.00

0.00

Trade sources

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