IKAR in Mass and Industry Media

PM markets: wheat prices ease in France, with no frost fears

Agrimoney.com

Wheat prices in Paris extended the losses of the previous session, with US markets closed for a national holiday.

Grain markets are waiting for a big revision of the US government crop estimates, which will shed light on sowings for the 2017-18 season.

The market is expecting a cut to US wheat sowings, but high wheat stocks are weighing on markets.

'Limited' frost damage

Date from the EU's crop monitoring service showed 'limited' frost damage over the recent cold snap, with no worsening of condition expected for at least the rest of the month.

On Friday the French farm office FranceAgriMer saw 92% of the country's wheat crop in good or excellent condition.

March Paris wheat futures finished down 0.3%, at E171.00 a tonne.

Ethiopia buys big

Russian wheat prices rose again last week, thanks to the stronger rouble and African demand.

The Ethiopian government bought about 400,000 tonnes of wheat in a tender, with most expected to be sourced from the Black Sea, following Friday's Egyptian purchase.

Russian agricultural consultancy IKAR repoted Black Sea Russian wheat ate $191 per tonne at the end of last week, up $3 week on week.

And SovEcon, another Russian consultancy, quoted FOB wheat at $190.5 a tonne at the end of last week, up $1 from a week earlier.

Oilseeds ease

Oilseed prices declined, tracking crude palm oil prices lower.

"Euronext rapeseed prices lost between E2.50-3.00 per tonne across the board as weather conditions remain mostly favourable in South America whilst the support from palm oil fades away" said CRM AgriCommdoties.

"Malaysian palm oil futures continued lower and reached a fresh 3-month low on improving production outlook and reduced demand."

March rapeseed futures ended down 0.6%, at E421.00 a tonne.

South African rally

Corn prices in South Africa rallied on a weaker rand, despite good production prospects.

"Most provinces of South Africa received rainfall this weekend and are likely to see additional showers this week," said Wandile Sihlobo at AgBiz.

"This bodes well with crop growing process as it is largely in the pollination stage that requires fairly wet weather conditions."

But markets are still jittery over the regional outbreak of armyworms, which is likely to reduce production in neighbouring countries, if not necessarily South Africa.

June yellow corn futures finished up 1.4%, at 2147.00 rand a tonne.

Brazil to import robusta

Robusta coffee futures in London rose, on signs that Brazil is now ready to imports supplies of the variety to ease a local shortage.

Brazil's Agriculture Ministry on Monday published rules for importers of robusta coffee from Vietnam.

This step will now allow robusta imports, the first time Brazil has sourced foreign coffee, in order to supply the country's domestic instant coffee industry.

May robusta futures finished up 0.6%, at $2,186 a tonne.

Heavy Ivorian supply

Cocoa futures fell again, with prices back on the defensive after a short-lived technical rally, uncer pressure from the ample West African crop.

This season's cocoa arrivals at Ivorian ports reached 1,227,000 tonnes by February 19, up from 1,195,000 tonnes during the same period in the previous season.

But there is believed to be much more supply stuck in upcountry, which will move if prices start to rise.

May London cocoa futures finished down 0.9%, at £1,612 a tonne.

http://agrimoney.com/marketreport/pm-markets-wheat-prices-ease-in-france-with-no-frost-fears--3981.html

27.02.17

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