Drought in Russia: Grain region particularly affected
In Russia, the main region for grain cultivation has been experiencing dry conditions for weeks. This is likely to result in lower yields and poorer quality than previously expected.
Soybeans continue to rise | Good weather limits corn gains | EEX potatoes under pressure
Wheat: CBoT falls to all-time low
Wheat trading on Euronext ended mixed on Friday. The September futures rose by 0.25 € to 202.75 €/t, resulting in a weekly loss of 4.75 € (2.3%). On the CBoT, the June contract dropped by 7.5 cents to 5.22 US-$/bu (170 €/t), increasing the weekly loss to 21.25 cents (4.9%).
Wheat futures on the CBoT hit an all-time low on Friday. Euronext continued to trade near contract lows on Friday. Improved conditions for winter wheat in the US and the Black Sea region have put pressure on prices.
Oilseeds: Soybeans continue to rise
Rapeseed prices on Euronext slightly declined on Friday. The front-month August lost 1 € to 471.25 €/t, resulting in a weekly loss of 0.50 € (0.1%). On the CBoT, the July soybean increased by 6.75 cents to 10.52 US-$/bu (344 €/t). However, there was still a weekly loss of 6.25 cents (0.6%).
The friendly sentiment in the soybean market is due to reports from Switzerland indicating significant progress in trade talks between the US and China.
Corn: Good weather limits gains
Corn futures closed slightly higher on the CBoT on Friday, with July up 2.25 cents to 4.50 US-$/bu. However, there was a weekly loss of 19.25 cents (4.1%). On Euronext, June rose by 0.75 € to 192.50 €/t, with a weekly loss of 6.25 € (3.1%).
Corn futures on the CBoT benefited from short-covering ahead of the WASDE report, which the USDA will release today. However, favorable growing conditions in the Corn Belt continue to have a bearish effect.
Potatoes: Cash markets weigh down
On the futures market, the front-month June25 held steady over the weekend and closed at 15 €/dt. April27 remained unchanged at around 16 €/dt, while the April26 contract slightly dropped to 16.60 €/dt. Cash market prices continue to be under pressure.
Belgapom's leading price index announced another decrease of 2.50 € to 7.50 € for Fontane on Friday, bringing it into single digits. Due to insufficient trading activity, no price was published for Challenger.
Milk: Skimmed milk powder with gains
Butter traded predominantly weaker on the EEX last week. The front-month May dropped by 144 € to 7,204 €/t. However, futures for skimmed milk powder increased. In the past week, June gained 73 € to 2,438 €/t.
The positive sentiment in skimmed milk powder was driven by rising selling prices for whole and skimmed milk powder at the GDT auction last Tuesday. The butter market is currently adopting a wait-and-see approach.
Exchange rate: 1 € = 1.1252 USD 1 US bushel corn = 25.4012 kg 1 US bushel wheat = 27.2155 kg 1 US bushel soybean = 27.2155 kg 1 US cwt = 45.36 kg (live weight, note) 1 acre = 0.4047 ha
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