EU Grains Lower Once More
18/12/12 -- EU grains closed mostly lower once more with Jan 13 London wheat down GBP5005/tonne to GBP212.00/tonne, May 13 down GBP2.00/tonne to GBP216.00/tonne and new crop Nov 13 GBP1.40/tonne easier at GBP188.60/tonne. Jan 13 Paris milling wheat fell EUR2.00/tonne to close at EUR255.75/tonne.
The market is under pressure from year-end liquidation and fund money pulling out of the grains sector.
Copa Cogenca estimated the UK wheat crop at only 13.5 MMT in 2013, despite a return to "normal" 7.7 MT/ha yields, as plantings slump to just 1.756m ha.
They also placed the UK barley crop at 6.52 MMT in 2013, (+18% on 2012) as spring plantings jump 40% to 865K ha.
In addition they pegged the UK rapeseed crop unchanged at 2.56 MMT in 2013, with plantings down 3% and yields up to 3.5 MT/ha.
As far as the whole of Europe is concerned they go for a modest 2.2% increase in soft wheat output to 127.7 MMT, with barley production falling by 2.7% to 54.1 MMT and the OSR crop climbing 8.8% to 20.96 MMT by virtue of a 6.3% increase in area and a 3% rise in yields.
Elsewhere, the Ukraine Ministry say that 92% of winter grains in good/satisfactory condition vs 66% this time a year ago.
Russia sold 61 TMT of the intervention grain offered up at this week's government auction, bringing the total amount sold since sales began on Oct 23 to just over 1 MMT.
"Snow cover increased across south central North Caucasus and eastern Ukraine over the past week, which has increased winterkill protection there. However, snow remains very limited across northern portions of North Caucasus as well as southwestern Volga Valley," say MDA CropCast.
