EU Grains Closing Comments

20/05/11 -- EU grains closed with May London wheat unchanged at GBP205.00/tonne and with new crop Nov up GBP0.50/tonne to GBP194.00/tonne. Nov Paris wheat closed EUR0.75/tonne higher at EUR244.75/tonne whilst May12 was down EUR0.25/tonne to EUR247.75/tonne.

It was a relatively quiet end to another torrid week that saw May London wheat finish with overall gains of GBP8.00/tonne and with Nov ending GBP18.75/tonne firmer in just five trading sessions. Nov Paris wheat was EUR19.00/tonne higher on the week.

Scattered showers fell across northern and western parts of the UK Friday afternoon. Central and eastern parts of France also saw some showers, heavy ones in places which are seen moving into Germany across the weekend. That will help those that get the rain, but it looks like plenty will also miss out entirely.

In the UK ex farm levels for new crop feed wheat are now up to around GBP180.00/tonne, with barley at around GBGP170.00/tonne and OSR pushing GBP400.00/tonne off the combine.

Brussels granted 173,000 MT of soft wheat export licences this week, bringing the marketing year to date total to 17.2 MMT, 9.5% up on last season as the pace continues to grind slowly lower.

FranceAgriMer once again raised it's forecast for French soft wheat exports outside the EU-27 to a new record 12.8 MMT, almost a third higher than last season's record effort. Ending stocks will now come in at 2.2 MMT, they added. That's 35% down on last season's 3.4 MMT.

US wheat continues to struggle with HRW areas on the Plains hot and dry and with spring wheat areas further north soaked and facing up to a further four inches of rain in the next seven days, according to Martell Crop Projections.