WEEKLY SUMMARY 8 ’21
News from the markets in Bulgaria
- During the past period, the agrometeorological conditions were determined by average daily temperatures around and below the climatic norm, which kept the winter cereals at rest, informs NIMH. The fallen snowfall and the formed snow cover, mainly in Western and Southern Bulgaria have improved the conditions for wintering of the crops.
- During the next seven-day period, temperatures are expected to rise and conditions change. Their average daily values will reach the biological minimum for the course of vegetation in winter cereals, but activation of the processes by the end of the period is not expected. In wheat and barley, the phenophases third leaf and twinning will be observed.
- Due to the snowmelt and the forecasted precipitation, the conditions in the first half of the period will not allow the implementation of the seasonal agro-technical activities.
News from the markets in Europe
- A rare increase in the wheat market yesterday, as MATIF’s top futures added an impressive € 8.50 for one day, a move that is completely normal on a weekly basis. A new Tunisian auction, which will demand 100 km of soft and durum wheat, as well as feed barley, will also contribute to the firmness of the prices.
- Due to extremely low interest in January corn futures, Euronext has decided to withdraw January futures for 2023 from circulation. It is very likely that the same will happen in the coming years. According to the latest statistics, open interests are zero. Otherwise, the leading futures of 2021 yesterday broke the ascending triangle, which means that it is likely to cost up to € 230.
- Rapeseed futures are also renewing the rise, with higher growth taking into account the contracts of the new harvest, which in itself is a confirmation of the continuing bullish structure of the market.
- Once again, Egypt refuses to buy crude sunflower oil because of expensive prices. With a steadily rising pound, Turkey’s Grain Board is far more determined, negotiating oil at a staggering $ 1441 per tonne based on CFR.
News from the markets in America
- It seems that we are not the only ones to have read US analysts predicting winter wheat damage, because despite the weak start of the session, futures in Chicago eventually took another big step up yesterday. The market is also supported by SovEcon’s lowered forecast for the new harvest in Russia, as well as the ongoing purchases of importers such as Pakistan, Japan, South Korea and Tunisia.
- The corn market is under pressure from closed ethanol plants, with the energy administration yesterday confirming a weekly drop in production, while stocks are rising. With a negative sign for the prices is the expected significant growth of the areas this spring. Weather in South America, however, is still crucial, and recent forecasts again do not seem optimistic about production in Argentina and southern Brazil.
- With the apparent support of oil and a significant number of closed refineries in the United States, the soybean oil market is climbing to new heights, reaching levels unprecedented since 2012/13. Like corn, soybean and soybean meal markets have been consolidating since late January, closely following what is happening in South America. As sowing approaches, soil drought in the United States is back on the agenda, and we will remind you that it is currently the largest and most comprehensive for the last 5 seasons.