Weekly Agri- Commodities Recap: 29/04-03/05/24
May 03, 2024
Wheat prices underwent a correction on Monday, dropping over 2% primarily due to an improved weather outlook in South Russia. This correction was particularly evident in MATIF and CBOT wheat contracts. However, Kansas wheat prices remained resilient, buoyed by declining Hard Red Winter (HRW) wheat ratings. Russian wheat prices saw a slight increase, with 12.5% protein Russian wheat prices on a FOB basis for May/June shipment rising to $212 per ton. US weekly export inspections met expectations, with soybeans totalling 250k tons, corn 1226k tons, and wheat 481k tons. Crop progress reports confirmed declining HRW wheat conditions, although corn and soybean plantings were progressing steadily.
Wheat prices continued their downward trend on Tuesday as profit-taking led to prices falling below key moving averages. Jordan cancelled a tender for milling wheat due to perceived high prices. USDA attaché reports forecasted steady wheat production in Australia but highlighted regional disparities in planting conditions. Market focus shifted to the Federal Reserve's interest rate decision, impacting currency markets, with EUR/USD falling to approximately 1.065.
Grain markets exhibited mixed movements on Wednesday, with wheat prices declining while soybeans and corn prices rose. Ukraine's strong grain exports persisted, with April exports surpassing previous months. Weather models suggested wetter conditions in key growing regions, potentially impacting planting progress. The Federal Reserve's decision to maintain interest rates influenced market volatility, with oil prices facing downward pressure on surging US commercial crude oil stockpiles. MATIF remained closed, contributing to low trading volume on CBOT.
Soybeans and corn rallied on Thursday amidst concerns over flooding in southern Brazil, frost risk in Argentina, and potential planting delays in the US. This weather-driven market contrasted with the rebound in wheat prices, which managed to close slightly higher after three consecutive down sessions. Argentina's Buenos Aires Grain Exchange lowered its corn estimate, adding to market sentiment. US weekly export sales met expectations, with reductions in drought conditions reported. Non-commercial participants were active buyers of MATIF wheat.
Wheat prices closed the week on a strong note on Friday, driven by renewed concerns over the Russian wheat crop. French wheat ratings remained stable, while the US reported soybean sales to unknown destinations. Funds continued to cover short positions in corn and wheat, with wheat prices testing previous highs. The softer US jobs report suggested potential future rate cuts, impacting market sentiment. US stock indices rallied, and the dollar weakened as markets priced in the possibility of rate cuts later in the year.
Weekly Recaps
Freight
Freight Recap:
18/04/25
Apr 18, 2025
The Atlantic market saw further pressure with rates declining across most routes. Despite some vessel movement toward South America on hopes of stronger grain activity, this has not translated into stronger sentiment. The region remains oversupplied, and charterers continue to dictate terms, keeping offers low and confidence weak.
Commodities
Agri- Commodities:
7/4- 11/4/25 Agri
Apr 15, 2025
Grain markets began the week relatively stable, despite heightened volatility in U.S. financial markets. The threat of escalating trade tensions between the U.S. and China remained a significant concern, as President Trump proposed additional tariffs on Chinese imports. In the grain markets, U.S. export inspections for soybeans and corn were strong, while wheat inspections fell short of expectations.
Freight
Freight Recap:
10/04/25
Apr 10, 2025
Atlantic: The market remained under pressure with falling rates driven by oversupply and limited fresh demand. While some activity was seen out of South America, it wasn’t enough to shift sentiment. Charterers maintained control, and offers remained far apart from bids, especially on transatlantic routes. Overall, market participants remained cautious, with attention also diverted by global financial uncertainty.
Commodities
Agri- Commodities:
31/3- 4/4/25 Agri
Apr 07, 2025
Grain markets kicked off the week digesting the USDA’s planting intentions report, which offered mild support to wheat and modest pressure on corn. However, corn still managed to finish higher for the old crop, while soybeans slipped slightly. Export inspections showed strong performance for corn and solid showings for wheat and soybeans. Winter wheat conditions held steady in Kansas but declined in Texas and Oklahoma. Market attention began shifting toward President Trump’s anticipated tariff announcement, raising questions over potential trade fallout.
