At the beginning of the week, both cereal and oilseed markets received a boost due to healthy demand conditions and ongoing supply concerns. Moreover, rising crude oil prices lent support for agricultural markets more broadly.
That being said, wheat and rapeseed markets ended the week lower on the back of projections of a bumper Russian wheat yield and ongoing talks between Russia and the UN to open up a corridor into the Black Sea region to export essential goods.
Meanwhile, Indonesia’s decision to remove its export ban on palm oil likely continued to drag on rapeseed’s bull run.
Paris milling wheat and UK feed wheat ended the week a bit lower after hitting new crop contract highs at the end of May. Weaker support was likely tied to improved weather conditions in France, which should have supported its wheat crop conditions. Moreover, India’s decision to relax its export ban in recent days should have also weighed on markets somewhat.
New crop Paris rapeseed dipped to the lowest levels since late March in early June, but still remains elevated by historical standards. Indonesia reversing their ban on exports of palm oil, alongside projections for a healthy Canadian canola output and some improved weather conditions across Europe should have all contributed to the downward trend in prices.