EU Grains Mostly Higher, Although London Wheat Falters

05/10/16 -- EU grains closed mostly a little higher on the day. London wheat was mostly lower despite continued sterling weakness.

The day ended with Nov 16 London wheat unchanged at GBP127.60/tonne, Dec 16 Paris wheat was up EUR0.25/tonne at EUR160.50/tonne, Nov 16 corn was up EUR0.50/tonne lower at EUR161.00/tonne and Nov 16 Paris rapeseed was EUR1.25/tonne firmer to EUR377.00/tonne.

Paris grains remain rangebound, with wheat and corn both stuck around the EUR160/tonne level and rapeseed firmly entrenched in the EUR370-380/tonne region.

London wheat claws it's way higher due to currency, with the pound reaching a new 31-year low against the US dollar today. It also set 5-year euro lows as well, despite manufacturing and construction data expanding at the fastest pace in years.

The US corn and soybean harvests looked nailed on the be record large this year, but demand is also high and supplies out of South America are questionable. The global rapeseed S&D situation is also tighter again this year, with that market now greatly influenced by fluctuations on soybean and palm oil prices.

Russia's PM forecast a final clean weight grain crop of 115 MMT, with 112 MMT of that already harvested, a 25-year high.

Ukraine said that they'd currently harvested 45.08 MMT of grains off 78% of the planned area. Corn production currently stands at 6.26 MMT off 25% of plan.

Winter grain sowings in Ukraine are complete on 3.95 million ha, some 360k ha less than at this time a year ago. Wheat plantings are 59% complete at 3.65 million ha. Winter OSR sowings are now said to be 100% done at 722k ha. Dry weather means that emergence is a problem.

The European Commission has proposed that the EU could import more cereals from Ukraine under zero tariff agreements.

Jordan cancelled their tender to import 100 TMT of hard wheat.

Morocco bought 260 TMT of US hard wheat under a preferential agreement.