HFM information and reviews
HFM
96%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
89%
FBS information and reviews
FBS
88%
Vantage information and reviews
Vantage
85%
XM information and reviews
XM
82%

Temporary Relief to Commodities Supply: Black Sea Grain Deal


The Black Sea grain deal extension did not prevent wheat prices from experiencing a decline, as uncertainty surrounding the deal’s future continues to loom. Therefore, on a generally positive day across markets, the risk-on sentiment fueled optimism. It seems that the US would reach a resolution on the US debt ceiling. This positive outlook drove ICE Brent to close more than 2.7% higher, demonstrating the ongoing influence of external factors on the oil market, which surpasses the impact of underlying fundamentals.

Bearish EIA Inventory Report

Although market sentiment remained positive, the Energy Information Administration (EIA) inventory report painted a largely bearish picture. Commercial crude oil inventories in the US saw a significant increase of 5.04 million barrels over the week, surpassing both the 3.69 million barrel build reported by the API and market expectations. The past week witnessed the highest accumulation of crude oil since mid-February. Additionally, the report indicated modest changes in refined product stocks, as gasoline inventories, decreased by 1.38 million barrels and distillate stocks rose by 80 thousand barrels.

Furthermore, there was a decline in demand by 606 thousand barrels per day across gasoline, distillates, and jet fuel. Despite this, the 4-week average for suggested gasoline and jet fuel demand remains higher than seasonal norms. In contrast, the 4-week average for suggested distillates demand has dropped below the 5-year average for this period.

The European gas market continues to face pressure as prompt TTF prices approach EUR30/MWh. Growing confidence in a comfortable balance contributes to the downward trend. Currently, EU gas storage levels stand at over 64% capacity, well above last year’s 41% and the 5-year average of 46%. The decline in front-end TTF prices also impacts winter prices for 2023/24, which had previously shown resilience in light of concerns about the balance during that period. However, recent changes in the forward curve indicate that the market is becoming less apprehensive about the next heating season.

Extension of the Black Sea Grain Deal Consequences

To address supply concerns, the Black Sea grain deal received an extension for an additional two months. While this extension offers some respite, it does not eliminate uncertainty regarding the future of the agreement. Initially, the deal was going to run for 120-day periods. Moreover, the short extension leaves questions unanswered. Additionally, flows of grains have been significantly hampered due to inspection-related issues. Despite the extension, CBOT wheat prices settled 3.4% lower, reflecting lingering market uncertainty.

The extension of the Black Sea grain deal provides a temporary reprieve for supply concerns in the market. However, the decline in wheat prices and the ongoing uncertainty surrounding the deal’s future underscore the challenges and complexities faced by the agricultural sector.

The market will closely monitor developments in the coming months. It is necessary to gain clarity on the long-term prospects of the Black Sea Grain Initiative. Besides, its impact on global grain supplies will play a huge role in the future of commodities.

#source


RELATED

Guide to Efficiently Diversifying Your Currency Trading Portfolio

In the ever-evolving world of currency trading, mere awareness of market trends and ad-hoc decision-making are inadequate. The success of a trader is underpinned by strategic portfolio design...

I can constantly make 1-2% on my money daily. Should I look at day trading as my full-time job?

If so, then obviously you should! Just think in the best case that if you began with $10,000 and were able to earn 1% of your money daily, you could become a millionaire or a billionaire in less than six years...

MetaTrader 4: A Deep Dive into the World's Most Renowned Trading Platform

When discussing modern trading platforms, MetaTrader 4 (MT4) inevitably takes center stage. Launched in 2005 by MetaQuotes Software, its revolutionary features and pioneering tools have firmly rooted it as a global trading mainstay...

An intro to financial markets and tradeable instruments

Financial markets play a crucial role in global economies, enabling individuals and institutions to trade a variety of financial instruments. This includes stocks, bonds...

Weekend trading

The forex market typically operates 24 hours a day, five days a week, from Monday to Friday. However, some brokers offer the option of weekend trading...

How much does Metatrader 4 cost

Venturing into the world of forex trading requires research and knowledge. This becomes particularly important when choosing your trading platform and the broker through whom you’ll trade...

Seven Crucial Forex Trading Rules to Live By

As a forex trader, your main goal is to take advantage of market opportunities by buying and selling major currency pairs. But forex trading is no walk in the park. While it’s one of the most popular ways to invest...

Forex Trading Myths

In this article, we’ll look at some of the most common myths associated with forex trading. Forex trading involves the buying and selling of currencies in a decentralised market...

Top 5 Books Every Forex Trader Should Read

Foreign exchange, also known as forex, can be pretty intimidating even for seasoned investors who are used to getting their hands dirty...

The psychology of forex trading – overcoming common biases

In this article, we explore the common biases experienced by forex traders across the globe, and how to overcome them...

Ten Forex Trading Tips for 2023

The foreign exchange (forex) market is the largest and most liquid financial market in the world, with a turnover of more than USD 5 trillion every day...

The Reasons Why 90% of Crypto Traders Lose Money

Even though trading as a whole, and cryptocurrency trading, in particular, is a potentially vastly profitable endeavor where one can make as much money in a month...

Conquering the Clamor: Navigating Market Noise for Informed Decisions

In the whirlwind world of finance, market noise is a constant presence, creating a din that can easily muddle the decision-making process for traders and investors...

Popular forex trading platforms

Forex trading platforms are designed to help traders navigate the complexities of the forex market, the largest and most active financial market in the world. They typically provide traders with the tools to execute trades and maximise profits...

Challenges in Forex Trading: Understanding and Mitigating Drawdown

In the vast landscape of the Forex market, as with all financial arenas, traders invariably encounter numerous challenges. One such formidable challenge is the deposit drawdown...

MT5 in Copy Trading and Social Trading

MetaTrader 5 is a leading trading platform with many trading opportunities, from providing technical analysis tools to creating trading group chats...

Seven essential cybersecurity tips for international travel

Cybersecurity measures should be on top of the what-to-bring-with-you list when preparing for travel, either for business or for tourism. OctaFX security experts give seven crucial cybersecurity tips to keep your data and finances safe while on the go...

Forex Trade Ideas: Start Learning About Forex

If you have just started trading, then you must have started getting acquainted with the basics of trading forex and online forex trading techniques. The more you learn, the more you will understand...

Trading Plan: How to Limit Mistakes and Minimise Losses

In this article, we provide guidance on how to create a comprehensive trading plan that includes trading goals, risk management rules, and a trading journal.

FBS: The Crucial Role of Time in Enhancing Trading Efficacy

In the intricate world of financial trading, numerous factors contribute to a trader's success. While indicators, market analysis, and portfolio management often take center stage, the element of time remains critically underappreciated...

FP Markets information and reviews
FP Markets
81%
IronFX information and reviews
IronFX
77%
T4Trade information and reviews
T4Trade
76%
Exness information and reviews
Exness
76%
Just2Trade information and reviews
Just2Trade
76%
FXNovus information and reviews
FXNovus
75%

© 2006-2025 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.