Estimates of Brazilian corn production in MY 2023-24 continue to decline, but this does not support the quotes. Farmers are harvesting first crop corn of the season 2023-24, with 4% of the areas processed (1% last year).
US corn prices have declined as weather conditions in South America improved production prospects. Low demand for wheat in the U.S. along with rumors of China canceling shipments of some SRW resulted in lower wheat prices.
Export prices for EU grains have increased following the exchange prices, although the quotes showed some decline earlier in the week given ambiguous prospects for wheat exports in the current season and competition with Black Sea traders.
Export quotes for Ukrainian grains have grown slightly amid restrained sales by farmers and increasing importers’ demand. Additional support came from tenders for the purchase of wheat held in Egypt and Lebanon.
The Black Sea sunflower oil market is showing a price increase. Sellers are offering the product at $880/t CIF Mersin for shipments in January-February, while buyers’ ideas are hovering within $855-860/t CIF Mersin.
The phosphate market has been stable in Brazil. MAP 11:52/12:52 is still offered at $560/t C&F. One of market participants reports that fertilizer purchases made by customers last year have created large carryover stocks, which does not contribute to the growth of MAP prices.
Global urea market players have once again focused on the information on the tender in India. This week, NFL has published the prices of the tender held on January 4, when 2.7 million t of the fertilizer were purchased: levels were within $316.8-359.3/t C&F.
Turkish steel mills continue purchasing imported steel scrap to provide operations in February. Despite quite active negotiations in the second half of the week, the number of fresh deals has been not that significant as many traders expected.
Iron ore quotes have dropped to a five-week low due to muted buying activity in China. Concerns about a potential shortage of the raw material, which had been roiling the market for several consecutive weeks, eased amid abundant stockpiles at China’s ports.
Quotes for imported steam coal have grown on the West European market following the stock exchange indices. At the same time, trade is moderate.