EU Wheat Ends Narrowly Mixed

07/11/11 -- EU grains ended mixed with Nov London wheat down GBP0.50/tonne to GBP150.00/tonne and Nov Paris wheat rising EUR0.50/tonne to EUR196.00/tonne.

The market was quiet ahead of Wednesday's upcoming crop reports from the USDA.

Nov Paris corn went off the board today and Nov Paris wheat expires on Thursday.

Rabobank increased their Australian wheat production estimate from 25.25 MMT to 25.6 MMT. Exports will reach a record "in excess of 21 MMT" they also said, at least 2 MMT more than the USDA's October estimate.

Record large carryover stocks from last season continue to weigh on the market there, they added, using the word "burdensome" - it's the first time we've heard that in a while. Indeed the FAO now peg world wheat output at a record 691 MMT, 6 MMT more than the last "burdensome" record crop in 2009 and 10 MMT higher than the USDA.

Russia's grain harvest now stands at 96.9 MMT in bunker weight off 96.7% of the planned area with yields up 21% on last year.

In Kazakhstan the harvest is over producing 29.7 MMT of grain in bunker weight with yields there more than doubling. That should produce a clean weight crop of around 26 MMT of which 22 MMT should be wheat, 3 MMT more than the USDA's latest missive.

The main problem that the landlocked latter now has is getting it's grain to market with Russia not too keen to co-operate at the risk of jeopardising it's own export ambitions.

Harvesting in Ukraine is 94% done producing 51.9 MMT of grain, with the corn harvest 77% complete at 16.4 MMT.