EU Wheat Gains - French Crop Conditions Downgraded
Mar 12 London wheat finished up GBP1.25/tonne to GBP205.50/tonne, benchmark May 13 was GBP0.75/tonne higher at GBP207.50/tonne and new crop Nov 13 was GBP1.90/tonne firmer to GBP187.40/tonne. Mar 13 Paris wheat rose EUR1.50/tonne to EUR245.75/tonne.
EU-27 wheat exports continue unabated, currently up 3.7 MMT, or 44%, based on year ago levels. To counteract that, Brussels have issued import licenses for 3.9 MMT more corn than at this stage in 2011/12 as the latter replaces the former as a feed stock.
It's not just here in the UK where wheat production prospects for 2013 already look questionable. FranceAgriMer report that only 66% of winter wheat there is in good/excellent condition, versus 82% this time last year and down from 74% as at Dec 3rd.
In the country's top wheat producing region of (the imaginatively named) Centre, where more than twice the normal rainfall fell in December, only 42% of the crop is rated as being in good/excellent condition.
Development is also well behind, with only 80% of the winter wheat crop at the tillering stage versus 99% this time a year ago.
The winter barley crop is 67% good/excellent, versus 74% in early December and 72% a year ago. Tillering is placed at 90% versus 100% this time last year.
Russia said that it exported 178 TMT of grains in the first fortnight of the month, of which only 57 TMT was wheat. That brings their 2012/13 marketing year-to-date total to 13.69 MMT, down by almost a third on this time a year ago.
Argentine weekend rains were lighter than expected and focused on the north of the country, missing the worst drought-affected areas.
In the US "A significant storm system is expected to cross the central Plains into the Midwest later this week, though, which should increase snow cover across the central Plains into the west central Midwest. This snow will be very beneficial in improving soil moisture and river levels once it begins to melt. Snow cover will likely remain a bit limited in the northwestern Plains, however," said MDA CropCast.
Dock workers in the major Brazilian port of Santos are said to be ready to hold a strike on Feb 22 in protest against the government's plans to raise cash by passing ownership of up to 95 of the nation's leading ports to private companies. The Santos strike will be followed by similar stoppages at other ports nationwide, say the unions.
Workers are concerned that the deal will lead to lower wages, job losses and reduced working conditions. An open-ended strike is planned for Mar 18 if worker's demands aren't met, add union leaders.
Meanwhile Reuters are reporting dockers at the privately-owned Santos container terminal of Embraport have occupied a Chinese ship trying to unload cranes destined to be part of the government's port modernisation program.
These kind of disputes look set to be a feature of a "summer of discontent" where protesters will be well aware of the supply & demand balance of power within the grains market switching more acutely than ever before almost entirely to South America in the coming months.
