Trends of the European market after the collapse
on Friday, trading volume on Euronext has reached huge values. This was especially true of markets for canola and wheat. In the oil market in the US and stock markets saw a technical correction, which has spread in grain markets. Due to the influence of heavy fundamental factors of the markets of wheat and corn suffered to a greater extent than the markets of oilseeds, which benefit from a hard balance. Soy keeps a tendency to growth.
According to the report by StatsCan canadian farmers plan to increase sowing area under the pea by 16% and lentils at under 30 % in order to meet the demand from India. Durum wheat would be sown, which is 5.2 % more than last year, but the soft wheat will sow 5.7%. Overall acreage under wheat will be reduced by 1.1 %, slightly less than expected. The biggest surprise was the information about sowing canola. Is expected to reduce the area of 1.5% decrease of crops canola 3.7 percent to 19,345 million acres, which allowed further increase prices for canola in Canada and canola in Europe. In addition, the oil market maintained a stable price of palm oil.
the harvest of soybean in Argentina held only 16.4 %, whereas usually at this time of the year it made 46 %. First, the volume of soybean production was revised downward by the Ministry of agriculture of Argentina, reducing the forecast at 3.3 million tonnes to 57.6 million tonnes. After this exchange of Buenos Aires reduced the estimated production by 4 million tons to 56 million tons.
it is Expected the decline in exports of Ukrainian grain to China at the end of the campaign. Rather limited look at the campaign 2016/17 MG. Such changes will influence corn and barley. Barley next season will not be able to reach this record level of shipments in China. Fairly low probability that the price of fodder barley will be equal to the price of wheat, as it was in September-October 2015. Their value in the coming months will differ on 10 $/ton and this trend is tracked in the forward agreements, which are now producers. The demand for barley from its largest importer is Saudi Arabia plays a crucial role in the formation of prices of barley in the new season, in particular and in Ukraine.
