EU Wheat Ends Mostly Lower Ahead Of Greek Elections

15/06/12 -- EU grains closed mostly lower with only Jul 12 London wheat bucking the trend and finishing GBP0.25/tonne higher at GBP175.00/tonne. Nov 12 London wheat fell GBP1.80/tonne to GBP154.00/tonne. Even inactive Aug 12 Paris wheat fell EUR2.25/tonne to EUR203.00/tonne, whilst Nov 12 was also down EUR2.25/tonne at EUR203.75/tonne.

For the week as a whole Jul 12 London wheat was up GBP3.50/tonne, whilst Nov 12 was GBP3.00/tonne lower. Across the Channel Aug 12 Paris wheat fell EUR5.00/tonne and Nov 12 lost EUR5.75/tonne.

The market is nervous ahead of the Greek elections this weekend, against a backdrop of spiralling borrowing rates for for the likes of Spain and Italy.

The widespread rains across western Europe that prompted Strategie Grains to raise their EU-27 wheat, barley and corn production forecasts yesterday (and indicate that further increases could be expected) have spread eastwards, taking in Poland and Romania and now Ukraine.

These rains may have come too late to help winter barley in Ukraine, the harvesting of which began at the beginning of the week in the south of the country, but will surely be of benefit to wheat as well as spring barley and corn.

The Ukraine state statistical service reports that June 1st grain stocks were 79% higher than year ago levels at 10.9 MMT thanks to minimal sales in Q1 of 2011/12 when an export ban was still in place.

Algeria said that it's 2012 grain harvest will come in 38% higher than last year at 5.8 MMT, and that it won't need to import any more durum wheat or barley for the remainder of the year.

Brussels announced that they have decided to extend the temporary suspension of duties on feed wheat imports from outside the Union, due to expire at the end of the month, until the end of the year.