EU Grains Mixed As UK Inflation Falls To Joint Lowest On Record

13/01/15 -- EU grains traded mixed. News that UK inflation fell to 0.5% in December, the joint lowest on record, seemed to make little difference to the pound which was up against the euro and down versus the US dollar.

The day ended with Jan 15 London wheat down GBP0.20/tonne to GBP129.00/tonne; Mar 15 Paris wheat was up EUR1.50/tonne to EUR195.50/tonne; Mar 15 Paris corn was EUR2.75/tonne lower at EUR159.50/tonne; Feb 15 Paris rapeseed was EUR1.25/tonne firmer at EUR357.00/tonne.

UkrAgroConsult said that the EU-28 2015 rapeseed crop could fall 15% to a 3-year low of around 20.5 MMT due to the neonicotinoid ban.

Russia bought 20,925 MT of grains for its intervention fund, in its first purchasing round of 2015. That takes the total bought so far this season to only 308,860 MT out of an official government target of 5 MMT.

Inflation in Russia finished 2014 at 11.4%, said the local State Stats Office. It was only 6.1% at the beginning of the year, prior to the seizure of Crimea and subsequent Western sanctions against them.

Agritel said that Russia had exported 16.3 MMT of wheat in 2014/15 (to Dec 31), and that they don't expect full season exports to finish much higher than 18 MMT due to the new Feb 1 export duty. That's 2 MMT less than the USDA forecast yesterday and 0.3 MMT below exports in 2013/14.

Ukraine said that it had exported more than 20 MMT of grains so far this season (to Jan 12), including 8.34 MMT of wheat, 3,72 MMT of barley and 7.77 MMT of corn.

APK Inform said that Ukraine exported 200 TMT of wheat to Egypt in December, and has shipped the world's largest wheat buyer a record 1.66 MMT of wheat so far in 2014/15, up from 1.43 MMT a year ago. They forecast Ukraine's full season 2014/15 wheat exports at 10.8 MMT, up from 9.3 MMT a year ago, although slightly less than the 11.0 MMT estimated by the USDA yesterday.

Turkey bought 60 TMT of durum wheat and 50 TMT of barley in a tender. Israel are in the market for 100 TMT of optional origin corn.