The FAO Cereal Price Index was down 0.7% on a monthly basis. International wheat prices fell 3.8% in August, driven by higher seasonal stocks in several leading exporters. International "coarse" grain prices also fell 3.4%, mostly due to heavy global corn supplies from Brazil and the upcoming start of harvest in the United States.
The FAO vegetable oil price index fell 3.1% in August, partially reversing a sharp move up from 12.1% in July. Global sunflower oil prices fell by nearly 8% in the month, amid weakening global import demand and ample supply from major exporters.
Global soybean oil prices edged lower due to improved soybean growing conditions in the United States, while palm oil prices edged lower amid seasonally rising output in leading Southeast Asian producing countries.
Currently, grain markets are awaiting new guidance from the US Department of Agriculture's (USDA) monthly crop forecast due out today.
Export sentiment in Europe was further undermined by signs that a recent improvement in weather conditions in Argentina could limit drought damage to wheat and allow Argentine exports to continue to Africa, traders said.
Black Sea export competition is another factor looming over the market. "Latest estimates of Russia's wheat export surplus this week remain a bearish factor," a German trader said.
"Signs of Russian wheat reaching Morocco, the main export market for European Union wheat over the past year, also cloud the outlook, especially in France," the experts said.
European traders also commented on the political discussions regarding grain exports from Ukraine. According to them, the ban on Ukrainian grain being sold directly in five eastern EU countries, which expires on September 15, is likely to be preserved.
"Volumes transiting from Ukraine by truck and inland waterways to EU ports appear large enough to clear Ukraine's expected export surplus this season without disrupting eastern EU markets, so I think the current system will continued," commented a German trader.
Leave a comment