EU Wheat Nudges Higher In Quiet Trade

04/07/12 -- EU grains closed mixed but mostly higher in a pretty subdued session with America closed for the Independence Day holiday. Jul 12 London wheat ended GBP2.75/tonne higher at GBP201.00/tonne and Nov 12 was GBP0.50/tonne higher at GBP178.50/tonne. Aug 12 Paris wheat closed EUR2.00/tonne firmer at EUR236.00/tonne, whilst Nov 12 was EUR1.50/tonne higher at EUR237.50/tonne.

Jul 12 London wheat goes off the board on Friday. Open interest is very limited and the few remaining shorts are getting squeezed out as longs say "OK, deliver against it then."

The wet weather looks like continuing to delay harvesting, although there are some reports around today of rapeseed being sprayed in readiness, grains look a good few weeks away yet.

It's the polar opposite in the US where trade estimates for US corn yields are being cut on a daily basis on the back of heat and dryness.

Ukraine's Ag Ministry report that 3 MMT of winter grains have been cut so far, with yields only coming in at 1.76 MT/ha, some 37% down on this time last year. That makes the official grain harvest estimate of 50 MMT this year, down only 12% look unlikely even if a second successive bumper corn crop is in the field.

The Russian Ministry meanwhile said that they'd harvested 5.8 MMT of winter grains so far, with yields seen down 39% on last year. Quality there is said to be good, however.

Russian analysts IKAR said that domestic grade 4 milling wheat prices at Black Sea ports there were up 25% in a week due to the outlook for sharply lower production this year.

Jordan said that it was postponing it's tender for 100,000 MT of optional origin wheat due to lack of offers.