The EUR/USD currency pair rose to 1.0608. The price of US West Texas Intermediate (WTI) crude oil increased to $69.24 per barrel.
Oil prices edged higher on Tuesday, continuing the upward trend from the previous day, driven by the production halt at Norway's "Johan Sverdrup" oil field. Investors remain cautious amid concerns over a potential escalation of the Russia-Ukraine war. Adding to the supply constraints, Kazakhstan's largest oil field, "Tengiz," operated by U.S. company Chevron, reduced oil output by 28-30% due to maintenance activities. The repairs are expected to be completed by Saturday, according to the country's Ministry of Energy. The halt in production at Norway's "Johan Sverdrup" field, which produces 755,000 barrels per day, due to a power outage, combined with the output reduction at Kazakhstan's "Tengiz" field, provided additional support for the rise in oil prices.
| CBOT | |||
|---|---|---|---|
| Chicago | Contract | USD/mt | +/- |
| Wheat | March | 208.61 | +0.73 |
| Corn | March | 172.34 | -0.79 |
| Soybeans | January | 366.89 | -4.13 |
| Soymeal | January | 320.22 | -1.87 |
| EURONEXT | |||
|---|---|---|---|
| Paris | Contract | EUR/mt | +/- |
| Wheat | March | 227.25 | +0.75 |
| Corn | March | 211.25 | -1.00 |
| Rapeseed | February | 540.75 | -2.25 |
Yesterday, March wheat futures in Chicago rose by 2 cents to $5.67 3/4 per bushel. Wheat futures in Chicago and Paris also increased. Tensions between Ukraine and Russia escalated further as Ukraine targeted Russian weapons depots, which contributed to the rise in wheat prices. Ukraine's Ministry of Agriculture expects the 2025 wheat production to increase by 3 million tons compared to 2024, reaching 25 million tons, though this is the maximum forecast. With average yields, the production is projected at 22 million tons. Between July 1 and November 17, 2024, EU soft wheat exports reached 8.79 million tons, 3.87 million tons less than the previous season.
Yesterday, CBOT March corn futures fell by 2 cents to $4.37 3/4 per bushel. Corn futures in Chicago and Paris also declined. Ukraine's Ministry of Agriculture raised its forecast for corn acreage in 2025 by 0.5 million hectares due to reduced soybean plantings. According to Anec, Brazil's corn exports in November are expected to reach 5.57 million tons (up from the previous estimate of 5.38 million tons, compared to 6.4 million tons in October and 2 million tons less than November 2023). Algeria postponed purchasing 240,000 tons of feed corn due to high prices. Today, SEA is expected to report record ethanol production in the United States for the past week.
Yesterday, Chicago January soybean futures dropped by 11 1/4 cents to $9.98 1/2 per bushel. The soybean complex in Chicago, rapeseed futures in Paris, and canola futures in Canada also declined. Favorable growing conditions for soybean crops in Brazil and Argentina are weighing on prices. Without strong support from oil prices, the oilseed segment has fallen. Anec forecasts Brazil's soybean exports for November at 2.8 million tons (down from 4.7 million tons in October and roughly 50% less than November 2023). Abiove projects Brazil's 2024/25 soybean production at 167.7 million tons, with a record export volume of 105.2 million tons. Palm oil prices in Malaysia also declined yesterday after news from China indicated reduced imports.