The geopolitical tensions in the Middle East make the agricultural markets very volatile

“Agricultural Analyses & Stratégies” n°159 for the month of March 2011 is available on your subscribed space. Good reading Wednesday still, the agricultural markets continued to be influenced by the external elements. The very strong tensions always in the Middle East kept the pressure on the courses of the agricultural raw materials. The activity was very constant on Euronext (around 70000 contracts treated on wheat, 15000 on colza and 5000 on corn), translating the nervousness of the operators. With the opening of Euronext, the markets quickly took down in movements of panic. Colza lost until 27€/T, the wheat 17€/T and the corn 13€/T. Then the courses found calms it, while remaining in negative territory. The fundamental ones temporarily restored the tendency in the afternoon after the results of the invitation to tender of emitted Egypt the morning even. Indeed, the country bought to 120KT French wheat and American wheat 115KT. The announcement fell before the opening from Chicago and Euronext gained until 5€/T. Then, the tonality depression returned on Euronext with the orientation of the Chicago wheat in fall during the meeting of day. The operators fear problems of execution of the contracts and a disturbance of the international trade of the grains. Euronext finally enclosed near to balance on the whole of the products. The firmness of oil, near of 100$/baril, limited the losses on colza.

French market
The courses of cereals took again strength today, in a constant current of business. The fodder barley finds an interest purchasing in Spain (230€/T returned increases included) and in Italy (240€/T returned increases included).

British market
The storm concerning the markets of the agricultural conveniences continued to be used until in medium as meeting yesterday before losing its strength. After having lost until £11.75/T, the contracts May 11 and Nov.11 respectively enclosed with £195/T (- £1.75/T) and £159.25/T (- £0.75/T). The spread Paris-London on the expiry May 11 remained on the same levels of the day before, above 11€/T in favor of the Parisian place. On the foreign exchange market, Sterling was supported by the vote of Spencer Paves, member of the Monetary policy committee, in favor of a rise of short-term interest rates. Thus, Sterling remained firm vis-a-vis the euro while posting itself above 1.18€. Vis-a-vis the dollar, Sterling approached the 1.62$.

Market Black Sea
The prices with export in Ukraine decreased, but this fall remains of weak width compared to the fall of the prices on the worldwide market. The wheat with export is worth 355-360$/T FOB, the corn 295$/T FOB and 285$/T DAF.