Agri-commodity tracker: Markets continue to react to news from Ukraine

By Jane Byrne contact

- Last updated on GMT

© GettyImages/Dmitri Zelenevski
© GettyImages/Dmitri Zelenevski

Related tags: Maize, Soybean, Wheat, Argentina

Global wheat futures saw overall pressure last week, following on from the renewal of the UN Black Sea export corridor.

With tight global supply, markets continue to react to news from Ukraine, according to an AHDB report​.

But Chicago maize futures were strengthened last week, despite the Black Sea deal extension. “Concerns are rising that significant areas of Ukrainian maize might be left over winter in fields due to fuel shortages and difficulty harvesting,”​ commented the analysts.

Weather in Argentina has seen improvements, with more rainfall, though maize planting remains slow compared to previous years.  

Longer term, the price direction will be influenced by South American crop sizes and global maize demand, noted the AHDB team.

Oilseed markets

There was pressure across the oilseed complex last week, reads that overview. Chicago soybean futures (May-23) were down (-1.3%) closing at $528.96/t on Friday.

Despite bargain buying on Friday, which supported oilseed markets, the pressure was mainly due to questions over Chinese demand. Currently there are increases in COVID-19 infections in China, which have led to lockdowns in certain districts, and, as of yesterday, Beijing has urged residents to stay at home, reported the UK oilseed market specialists.

Other factors pressuring the market were energy prices as nearby Brent crude oil closed at $87.62/barrel on Friday, down 8.7% across the week, impacting both the vegetable oil and oilseed markets.

Supply focus is currently on South America, notably Argentina, said the AHDB team.

“The Buenos Aires Grain Exchange said last week that the soybean planted area could be reduced if more rain doesn’t bring relief to drought areas soon. Plantings are currently delayed with the consultancy estimating plantings at 12% complete, compared to 29% at the same point last year.”

Rapeseed prices followed the wider oilseed complex, with Paris rapeseed futures (May-23) closing at €610.00/t on Friday, down €24.50/t across the week.

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