EU Grains Mostly Steadier As Exports Stay Strong

02/06/16 -- EU grains mostly higher happy to follow firmer US market

Front month Jul 16 London wheat closed up GBP0.85/tonne at GBP106.75/tonne, Sep 16 Paris wheat was EUR3.00/tonne higher at EUR167.75/tonne, June corn closed EUR2.75/tonne higher at EUR178.25/tonne and Aug 16 Paris rapeseed closed EUR4.50/tonne firmer at EUR37.725/tonne.

Good second half season wheat exports are cutting ending stocks estimates and at the same time increasing final export totals closer to last season's record.

Brussels confirmed 633 TMT worth of soft wheat export licences this past week, taking the 2015/16 total so far to 28.8 MMT, just 3% less than this time a year ago.

After running well ahead of normal, French wheat crops are now losing quality and slipping down ratings tables.

The crop looks generally pretty good at the moment, but there are strong concerns that the mild winter has increased the number of disease spreading insects.

Germany;s crop survived the mild winter well but crop development here is also a bit behind schedule now.

Overall, a similar crop to last year's 16.4 MMT harvest can be expected for UK wheat at the moment.