EU Wheat Closing Comments
It was another strong day for EU grains, with November London wheat closing GBP2.45 higher at GBP117.45/tonne and November Paris wheat ending EUR3 higher at EUR157.25/tonne.
November Paris corn closed EUR1.50 higher, with November Paris rapeseed up EUR4.25 and November Paris barley EUR6.00 higher.
As you can see the European markets certainly seem to have the bit between their teeth at the moment, we've suddenly gone from feast to famine.
The French farm ministry today said that the nation would produce 35.3 MMT of soft wheat this year, 2.5% down on last season despite a higher acreage. That might be towards the high end of estimates, with early reports on barley yields now coming in 5-15% lower than anticipated, and wheat likely to follow suit.
Early French barley yields continue to disappoint, and indications are that wheat and rapeseed yields will also be hit, coming in below last season's levels.
Russia is where the real emphasis is however. All of a sudden output here is dropping by 3-5 MMT a week, with Dow Jones today reporting on the possibility of a potentially heavily damaging weather phenomenon know as a "sukhovei" possibly on the cards for the south and west of the Ural Mountains this week.
This extremely hot and dry wind can apparently cause widespread crop devastation almost overnight.
Meanwhile it remains dry and warm in the SE of England, which may also be potentially lopping something off final yields, although perversely it may also help quality and protein levels.
November Paris corn closed EUR1.50 higher, with November Paris rapeseed up EUR4.25 and November Paris barley EUR6.00 higher.
As you can see the European markets certainly seem to have the bit between their teeth at the moment, we've suddenly gone from feast to famine.
The French farm ministry today said that the nation would produce 35.3 MMT of soft wheat this year, 2.5% down on last season despite a higher acreage. That might be towards the high end of estimates, with early reports on barley yields now coming in 5-15% lower than anticipated, and wheat likely to follow suit.
Early French barley yields continue to disappoint, and indications are that wheat and rapeseed yields will also be hit, coming in below last season's levels.
Russia is where the real emphasis is however. All of a sudden output here is dropping by 3-5 MMT a week, with Dow Jones today reporting on the possibility of a potentially heavily damaging weather phenomenon know as a "sukhovei" possibly on the cards for the south and west of the Ural Mountains this week.
This extremely hot and dry wind can apparently cause widespread crop devastation almost overnight.
Meanwhile it remains dry and warm in the SE of England, which may also be potentially lopping something off final yields, although perversely it may also help quality and protein levels.