Prices on CME corrected ahead of December USDA report
All products showed a net rebound on Chicago yesterday December 9, in a context where traders are correcting the decline of the last few days ahead of tonight's USDA report, the Agritel consultancy reports.
"The latest bearish elements, mainly the rains in South America and the production estimates in Australia, now seem to be integrated and the markets are once again turning to the demand dynamics on the international scene," the report reads.
The consultancy adds that China continues to lead the way, with the Chinese authorities' production estimate of 260.67 mln t of corn, a figure that appears overestimated by traders.
A slight rebound on cereal prices was seen yesterday in the wake of Chicago, while rapeseed rose by around 4 EUR/t on all Euronext contracts, correcting the downturn at the beginning of the week.
"December 2020 contract for wheat closes today and the March contract becomes the closest one. On the physical markets, the fundamentals held up well and the market was active for the 2021 harvest deliveries, mainly for barley. Many producers have already started their contracts for the 2021 harvest, taking advantage of relatively sustained prices compared to recent years," analysts comment.
In its November report, USDA estimate for corn export from Ukraine in 2020/21 was lowered by 8 mln t to 22.5 mln t vs. 30.5 mln t set in the October report.