Grains - Grain Products

Cereals daily: price decline continues

June 18, 2020 9:48 AM, Der AUDITOR
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FRANKFURT/PARIS. The wheat harvest in the USA is progressing well and yields in the southern part of Kansas are better than expected. The harvest situation in the Black Sea region has also improved. The prices for the new crop are being discussed. The closure of the German slaughterhouse in Rheda-Wiedenbrück shows once again that the coronavirus crisis is far from being over in Germany as well.

Foreign exchange and crude oil market

Important economic data are expected from the USA, and the first applications for unemployment benefits and early economic indicators are on the agenda for the afternoon. In Great Britain, the Bank of England wants to raise its upper limit for bond purchases to support the economy. The crude oil market has benefited from growing confidence in the financial markets. However, the recovery is being held back by fears of a second wave of the Covid-19 pandemic in China. Increasing numbers of new infections are also being reported in the USA and Brazil.

Foreign exchange market

Euro exchange rate

1.1251

-0.2%

Deutsche Bank

 

Crude oil market

Brent

40.5

-0.3 %

WTI

37.6

-0.6 %

Crude oil trade

Wheat market

Wheat started the trading day weaker in the USA and on the Black Sea. Egypt announced a new wheat tender, Ethiopia wants to buy 400,000 metric tonnes of milling wheat. The country is suffering from drought and locust infestation. Russia wants to set possible export quotas for the second half of the 2020/2021 season only in December. Moscow's government expects a wheat crop of 75 million metric tonnes compared to 73.6 million metric tonnes last year. The DRV expects a German wheat crop of 22.21 million metric tonnes, which is 3.7% less than last year.

Wheat (front dates)

CBoT (USD/bu)

492.50

-1.1 %

MATIF (EUR/mt)

180.25

0.2 %

Black Sea (USD/mt)

198.00

-1.3 %


Wheat spot market

Milling wheat (12/220/76)

Parity

EUR/mt

Diff. EUR/mt

Rouen, FOB

181.00

0.00

Creil, FOB

171.00

0.00

Hamburg, DDP

196.00

-2.00

Rhineland, DDP

198.00

-1.00

Neuss, DDP

192.00

-1.00

Upper Rhine Region, FOB

189.00

-1.00

Feed wheat (72/73)

Netherlands, CIF

199.00

-1.00

South Oldenburg, DDP

199.00

-1.00

Westphalia, DDP

198.00

-1.00

Upper Rhine Region, FOB

189.00

-1.00

Trade sources

Corn market

Dry and hot weather in the southern US corn belt drove up the corn prices in Chicago. According to the EIA report, US ethanol production rose by 4,000 to 841,000 barrels per day, and US ethanol stocks declined by 456,000 barrels to 21.34 million barrels. Brazil's export industry benefited from the reduction in the key interest rate, which made exports cheaper. In France, little demand put pressure on the physical market because of the high Spanish barley harvest. After the Westfleisch company at the Coesfeld site in Germany was severely affected by the coronavirus pandemic weeks ago, there were now infections at Tönnies in Rheda-Wiedenbrück. According to the report, 46 employees were tested positive for the virus over the weekend, and recently even 400 tests turned out positive. 20% of Germany's pigs are slaughtered there.

Corn (front dates)

CBoT (USD/bu)

331.25

1.2 %

Matif (EUR/mt)

165.75

0.1 %


Corn - physical market

Grain maize (commercial)

Parity

EUR/mt

Diff. EUR/mt

Bordeaux, FOB

158.00

-2.00

South Holland, CIF

186.00

0.00

South Oldenburg, DDP

190.00

0.00

Westphalia, DDP

192.00

0.00

Lower Rhine Region, DDP

184.00

0.00

Upper Rhine Region, FOB

182.00

0.00

Trade sources

 View more information
price chart, wheat, MATIF
price chart, wheat, CBOT
Price chart corn, yellow, 99.5% purity
Price chart corn short term, CBOT

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