EU Wheat Range Bound

Posted by Nogger - a legend in his own mind at 08:32 | Categorized as

14/12/11 -- EU grains ended mixed, but mostly slightly lower with Jan 12 London wheat down GBP0.25/tonne to GBP141.75/tonne and Jan 12 Paris wheat unchanged at EUR180.75/tonne.

London wheat seems stuck in the GBP140-145 range where it has now been for the past nineteen trading sessions. Paris wheat is similarly range bound between EUR178-183, supported by the weak euro.

Strategie Grains released their first estimates for UK grains production for 2012, noting that the unusually mild autumn weather has led to a rapid development of young crops.

Wheat plantings are seen little changed from last year at 1.98 million hectares, with a small increase in the winter barley area matched by a small reduction in anticipated spring barley sowings.

A return to trendline yields should see the UK wheat crop increase from 15.4 MMT to 15.7 MMT, with the total barley crop estimated at 5.7 MMT from 5.6 MMT in 2011. Both estimates constitute an increase of around 2% on 2011.

Wheat yields are seen rising from 7.8 MT/ha to 7.94 MT/ha, with winter barley yields up from 6.2 MT/ha to 6.49 MT/ha.