Ag commodities marked sharp decrease on COVID epidemic resurgence

Net decline was registered yesterday, Sep 21, in all markets, both commodities and equities. This is due to the resurgence of the COVID epidemic, which has led to fears of new confinements in many countries, leading to a new global economic slowdown, the Agritel consultancy reports.

"In the agricultural markets, funds accompanied these fears by taking profits on long positions generated in recent weeks. However, caution will be needed as prices in the Black Sea basin, particularly in Russia, continued to rise," analysts comment.

As reported, Egypt is taking advantage of this downturn to relaunch a call for tenders for wheat for loading between 21 and 30 November. This tender is accompanied by a 180-day letter of credit with, in this context, the Black Sea origin should again be retained.

It is noted that, rapeseed prices have fallen in the wake of crude oil and canola, mainly for economic reasons, while the fundamentals still promise a certain tension on this product, particularly in view of the sowing conditions for the 2021 harvest, with severe water deficit from Western Europe to the Black Sea region.

At that, all products marked a sharp decrease yesterday in Chicago, with funds selling massively on fears of a second wave of COVID and a slowdown in economic activity and demand.

Previously reported that staple grains export shipment from Ukraine has reached 10.48 mln t as of Sep. 21, agricultural commodities shipment dropped by 1.72 mln t or 14% YoY.