EU Wheat Closing Comments - Monday

Posted by Nogger - a legend in his own mind at 08:18 | Categorized as

16/07/12 -- EU grains closed sharply higher again with Nov 12 London wheat up GBP3.25/tonne to GBP191.25/tonne and Nov 12 Paris wheat EUR6.00/tonne firmer at EUR264.25/tonne.

The situation in the Black Sea is going from bad to worse.

Agritel now forecast wheat production in Ukraine down 41% to 12.90 MMT, with Russia's down 17% to 45.88 MMT and Kazakhstan's seen falling 48% to 11.90 MMT.

Exports are also forecast to slump alarmingly, with Ukraine only expected to ship 3.6 MMT of wheat this season, Russia 11.0 MMT and the Kazakh's 5.6 MMT.

The UK's economic prospects took another hit after the The International Monetary Fund said that growth here will only be 0.2% in 2012, a cut from their previous forecast of 0.8%, substantially worse even that Spain or Italy.

The US remains hot & dry. "Temperatures today and tomorrow are predicted near 100 F (37.8 C)   today and tomorrow in the Midwest corn and soybean belt, but sharp cooling is predicted Wednesday and Thursday when the jet stream carves out a trough in the Great Lakes – Eastern Midwest" say Martell Crop Projections.