Daily Grains Report 26.11.2020

Yesterday, the prices of wheat, corn and soybeans in Chicago dropped with the drop in the price of wheat being the most significant. Similar to this, wheat and corn prices fell in Paris.

The currency pair EUR / USD went up to 1.1924. Following the same trend, the price of American light oil rose to 45.76 USD / barrel.

Oil went up for the fourth time in a row on Wednesday, despite reports that US crude oil stocks increased more than expected. The increase in prices is supported by hopes that the vaccine against COVID-19 will have a positive impact on the demand for fuels. Both main oil benchmarks reached their highest price since the beginning of March, rising by about total of 9% in the last four days. The American Petroleum Institute announced that U.S. crude oil stocks increased by 3.8 million barrels throughout the week to about 490 million barrels, while analysts' expectations in a Reuters study were for a growth of 127,000 barrels.

 CBOT (Chicago)

  USD/mt

  +/-

Wheat 03.2021

 220.61

 -7.72

Corn 03.2021

 168.26

 -1.96

Soybeans 01.2021

 435.05

 -2.65

Soybean meal 01.2021

 437.51

 +4.30

EURONEXT (Paris)

  EUR/mt

  +/-

Wheat 12.2020

 211.75

 -1.00

Corn 01.2021

 194.50

 -1.50

Rapeseed 01.2021

 412.75

 +1.00

Rapeseed meal 12.20

 196.25

  0.00

 

Yesterday, the prices of wheat futures in Chicago dropped by 14.25 - 23 cents / bushel . South Korean importers bought 80,000 tons of wheat and Taiwanese millers 82,220 tons of wheat from the United States. Weekly export sales of wheat from the United States are expected to be in the range of 200,000 - 400,000 tons. SovEkon increased its forecast of Russian wheat harvest in 2020 by 0.9 million tons to the total of 85.3 million tons and exports by 1 million tons to 40.8 million tons. According to IHS Markit Agribusiness, the area sown with ​winter wheat in the United States in 2020/21 is 31.5 million acres, which is 3.6% more than in 2019/20 - 30.4 million acres. For the first time in the last 8 years, the areas sown with winter wheat are on the rise.

 

Yesterday, the prices of corn futures in Chicago fell by 5.5 - 5.75 cents / bushel . Chicago will be closed today and trade will resume on Friday. For the week ended November 20, ethanol production in the United States was 990,000 barrels per day, which is 28,000 barrels more than the previous week. Stocks increased by 663,000 barrels to 20,833 million barrels. Fuel consumption in the United States has declined to mid-June levels. Weekly export sales of corn from the United States are expected to be 0.8 - 1.4 million tons. According to RaboBank's forecast, corn harvest of 107.2 million tons is expected in Brazil for 2020/21. On the other side, USDA's forecast is 110 million tons. The Ministry of Agriculture of Ukraine forecasts a corn harvest in the country of 30 million tons for 2020. Turkey bought at auction 350,000 tons of corn at a price of 245.30 - 250.90 USD / ton C&F and delivery in January. 155,000 tons feed barley were additionally purchased at a price of 226.40 USD / ton C&F and delivery in December.

 

Yesterday, soybean futures prices in Chicago dropped by 7 - 8.25 cents / bushel . Weekly export sales of US soybeans will be 0.7 - 1.4 million tons, soybean meal 100,000 - 300,000 tons and soybean oil 12,000 -50,000 tons. In October, 8.688 million tons of soybeans were imported to China, which is 40.6% more than last year. 3.4 million tons of soybeans were delivered from the United States (almost twice as much as in 2019), and 4.23 million tons from Brazil. According to RaboBank, new soybean crop in Brazil is estimated at 130 million tons.

 

Sunflower oil prices are rising again in the Black Sea region and Rotterdam. FOB prices of wheat and corn have slightly dropped due to the approaching end of the year. Prices of all crops and products in China are either falling or remaining  volatile at constant levels. Markets are losing momentum for growth. On the other hand, oil prices are rising steadily.