Market review -12.03.2020
WHO's announcement of the Covid-19 outbreaks of the world pandemic intensified panic in global financial and commodity markets, with the Dow Jones falling 5.3%, S & P500 4.4%, Nasdaq 4.7%, and oil prices Brent grades - by 4.3% to $ 34.3 / barrel.
Purchase prices for sunflower in Ukraine fell by 800-1000 UAH / t to 9400-9800 UAH / t with delivery to the plant following the prices of sunflower oil. Processors have significant reserves of raw materials, so they are in no hurry to buy seeds at high prices amid uncertainty about export prices for sunflower oil.
Demand prices for April deliveries of Ukrainian sunflower oil fell to 650-660 $ / t FOB, while supply prices remained at a high level of 670-680 $ / t FOB, and for deliveries to India - at 720 $ / t CIF, which is 50 $ / t exceeds the price of offers of Argentinean soybean oil.
Futures for soybean oil in Chicago yesterday fell 2.7% to $ 597.8 / t, and soybean futures - 1.5% to $ 316.7 / t, despite rumors of China's purchase of several lots of soybeans on the west coast .
Malaysian Palm Oil Futures are rising for the second consecutive session amid lower than expected palm oil reserves and hopes for renewed exports to India, ignoring the drop in oil prices and palm oil quotes on the Dalian exchange. According to data released on Monday by the MPA, palm oil reserves in the country decreased by 4.2% compared to the previous month to 1.68 million tons.
May palm oil futures rose 0.7% yesterday to 2,359 ringgit / t or $ 557 / t, but today they may turn down following oil prices, so traders will continue to lower their purchase prices for vegetable oils.
After a two-day speculative growth, the Chicago stock exchange turned down on Wednesday. Investors conduct speculative sales, fearing that the coronovirus pandemic will trigger the recession of the global economy.
The wheat market was not even supported by the USDA weekly report, according to which the number of crops in good or excellent condition in Kansas for the week increased by 4% to 47%, while in Texas it decreased by 10% to 26%. At the same time, the moisture reserves in the arable layer in Kansas halved over the week
Experts expect weekly export sales of wheat from the 2019 harvest in the United States to decrease to 200-600 thousand tons.
May wheat futures in the United States fell:
$ 3.49 / t to $ 188.40 / t for soft winter SRW wheat in Chicago,
at $ 3.40 / t to $ 160.02 / t for hard winter HRW wheat in Kansas City,
at $ 2.48 / t to $ 188.12 / t for hard spring HRS in Minneapolis .
The results of procurement tenders confirmed a decline in wheat prices in the physical markets.
The Turkish TMO agency on March 11 purchased 305 thousand tons of soft red-grain wheat with a protein of 13.5% and delivered March 20-April 7 at a price of $ 225.1 / t C&F, which is $ 6.25 / t lower than at the auction February 18.
The Tunisian ODC agency yesterday acquired a tender of 125 thousand tons of soft flour (supposedly French) wheat with a protein of 11.5% and delivery in May-June at a price of $ 216.8 / t C&F, which is $ 12 / t lower than Bidding on March 5th.
However, the results of tenders and an increased forecast from FranceAgrimer were crossed out by news about the introduction of quarantine in many countries of the world.
May futures for wheat flour on MATIF fell 0.75 € / t to a 6-month low of 177.25 € / t or $ 200.69 / t.
At Euronext, investors have been shortening long positions in wheat futures for the second week
In Ukraine, purchase prices for food wheat this week fell in the port by $ 7-10 / t to $ 187-190 / t.
Demand prices for Russian wheat with 12.5% protein dropped to $ 205-206 / t FOB, while supply prices exceeded $ 210 / t FOB.
The devaluation of the ruble will help increase purchase prices and boost Russian wheat exports in the near future. In addition, producers traditionally increase the supply of old-wheat if the spring crops are in good condition.