Nogger's Blog

19/12/12 -- EU grains closed mostly lower although Jan 13 London wheat was unchanged at GBP212.00/tonne. Benchmark May 13 fell GBP0.25/tonne to GBP215.75/tonne and new crop Nov 13 was GBP0.60/tonne easier at GBP188.00/tonne. Jan 13 Paris wheat ended EUR1.00/tonne lower at EUR254.75/tonne.

EU grains followed US markets lower.

The Russian Ministry estimated the winter grains crop to be harvested in 2013 at 36.8 MMT, a 26% increase on this year.

Customs data showed that the UK only exported 90,355 MT of wheat in October, a 67% decrease on October 2012, taking cumulative exports for the 2012/13 marketing year to date to 379,358 MT, 57% below last year's total at this time.

Domestic wheat imports in October were in fact far higher at 220,874 MT reflecting the poor quality, and quantity, of this year's crop. That puts 2012/13 imports so far at 811,136 MT.

That would suggest that the Defra estimate on full season imports of just over 2 MMT will be on the low side. Private trade estimates suggest that 2.5-3.0 MMT may be nearer the mark.

Egypt's GASC bought 180 TMT of US wheat in it's tender, taking advantage of the recent price dip that's driven Chicago wheat prices to their lowest levels since early July.

In addition to that business the USDA also reported the sale of 110 TMT of US hard red winter wheat to private Egyptian buyers.

Bangladesh announced that it plans to buy 500 TMT of wheat over the next 6 months, most likely that will come from India who say that they expect their 2013 harvest, which begins in March, to be their third bumper crop in a row.

Jordan bought 100 TMT of optional origin barley in a tender.

Argentina announced that it would limit Jan/Feb wheat exports to a total 2 MMT before reviewing the situation in March.