Paris Wheat Ends Little Changed Monday

Posted by Nogger - a legend in his own mind at 19:30 | Categorized as

27/08/12 -- EU grains ended mixed, London wheat was closed for the bank holiday weekend, Nov 12 Paris wheat ended unchanged at EUR260.25/tonne, with other months EUR0.25/tonne lower to EUR0.50/tonne higher.

It was a pretty lacklustre session, early strength in the overnight Globex market saw soybeans set fresh contract highs, tied to lower production forecasts from the Pro Farmer Crop Tour of the US released after the close of Chicago on Friday night.

The US Midwest saw heavier rains than expected in west central and north central areas over the weekend. Central Kansas and parts of Oklahoma also received much needed rain.

In addition the fallout from Tropical Storm Isaac is likely bring decent rains for the central and southern Midwest over the next few days. Only minimal benefit may be gleaned by soybeans and corn at this late stage in their development, but potentially heavy rain for the southern Plains could be a boon ahead of winter wheat planting in states like Kansas and Oklahoma.

Argentina saw drier weather over the weekend, also a boost after a very wet August, whilst Brazil's wheat areas picked up some welcome rainfall.

Egypt bought 120 TMT of Russian wheat and 60 TMT of Romanian wheat for October shipment over the weekend, proof that the former aren't out of the market just yet.

The Russian Prime Minister and the Ag Minister are said to be due to hold a meeting on Friday to discuss Russia’s grain crop/exports.

Ukraine will export 23.3 MMT of grains in 2012/13, including 15.5 MMT of corn, according to the APK-Inform Agency. Despite anticipated lower cereal production this year that's a drop of less than 1% on exports in 2011/12 due to the high level of carryover stocks left from the 2011 harvest.

India said that they will release a total of 170 TMT of wheat from it's reserves onto the domestic market in September and October in addition to the 1.3 MMT of wheat that they have already sold off, much of which is finding it's way into the Asian market.