Weekly Agri- Commodities Recap: 29/07-02/08/24
Aug 05, 2024
Monday started with weaker futures markets as Russian wheat production increased while French wheat faced quality issues due to adverse weather. Algeria bought 100,000 tons of barley at around USD 218.80. Russia's central bank raised interest rates to 18%. Net short positions in wheat, corn, and soybeans were reduced.
Tuesday saw wheat futures recover nicely after an early dip, with corn and soybeans also slightly improved. Russian wheat prices hovered around USD 220. The Swiss grain harvest was disappointing, with yields down 30% due to a wet spring, mirroring poor results in France. Tunisia announced a tender for 125,000 metric tons of soft milling wheat and 50,000 tons of durum wheat. USDA export inspections showed strong numbers for soybeans, wheat, and corn.
Wednesday futures markets closed weaker, starting the day in the red. The cash grain market felt weaker with increased offers from the Black Sea region and subdued demand. U.S. corn and wheat looked attractive due to competitive prices. Brazil saw strong movement with farmers bringing soybeans and corn to market, with the corn harvest advancing rapidly. Tunisia acquired 125,000 metric tons of soft milling wheat and 50,000 metric tons of durum wheat.
Thursday saw Chicago corn futures drop below USD 4.00 for the first time in four years. Wheat markets were mixed, while the bean oil share gained. Jordan passed on a barley tender but will issue a new one on August 7. Cash grain markets were quiet, with Russian wheat showing a weaker tone. The French wheat harvest continued to disappoint. Taiwan's MFIG purchased 65,000 metric tons of Brazilian corn, and Ukraine’s 2024 grain forecast was reduced to 71.8 million metric tons due to heatwaves. Friday saw slight short covering in CBOT due to a weaker U.S. dollar, though European prices stayed weak. The USDA reported a private sale of 202,000 tons of soybeans to China for the 2024/2025 marketing year. Funds reduced their net short in corn while increasing their net short in soybeans. Concerns about a potential U.S. recession impacted global markets and currencies, offering some short-term support for CBOT prices. Weather forecasts suggest favorable conditions for harvest progress in France.
Weekly Recaps
Freight
Freight Recap:
05/06/25
Jun 05, 2025
The Panamax Atlantic market showed signs of a strong rebound, especially in both the North and South where firmer bids and tightening tonnage contributed to rising sentiment. Fixtures suggested that some charterers may have overplayed their hand, triggering a jump in rates
Commodities
Agri- Commodities:
26–30 /5/25 Agri
Jun 02, 2025
Monday opened quietly in Europe as U.S. markets remained closed for Memorial Day. MATIF wheat traded lower in thin volumes, but losses were limited by concerns over dry conditions in France and rising temperatures in Russia. The May JRC MARS Bulletin painted a mixed EU crop outlook, nudging soft wheat yield estimates slightly higher but trimming rapeseed expectations. Meanwhile, geopolitical noise grew louder with President Trump mulling new sanctions against Russia, and Germany lifting range restrictions on Ukrainian strikes using Western weapons.
Freight
Freight Recap:
29/05/25
May 29, 2025
The Atlantic market struggled with weak sentiment throughout the week. Following recent holidays, demand remained soft and fresh cargoes were limited, particularly in the North. In the South, while some fixing activity was noted, oversupply of ships continued to weigh heavily on rates. Owners faced increasing pressure as charterers held firm, and some vessels were reported fixing below last done.
Commodities
Agri- Commodities:
19-23/5/25 Agri
May 26, 2025
Grain markets exhibited volatility throughout Week 21, with wheat prices leading a mid-week rally before easing slightly into the weekend. Early in the week, MATIF milling wheat weakened in response to Saudi Arabia’s tender, which confirmed continued preference for competitively priced Black Sea wheat. Meanwhile, CBOT futures found strength, buoyed by a broader risk-on sentiment in financial markets after a brief dip following Moody’s downgrade of the U.S. credit rating. U.S. corn inspections came in strong, and planting progress remained well ahead of the five-year average, though winter wheat conditions unexpectedly declined. On the geopolitical front, markets briefly reacted to the news of prospective ceasefire talks between Ukraine and Russia, although subsequent clarifications tempered expectations.
