EU Wheat Rebounds From Multi-Month Lows

25/04/13 -- EU grains closed mostly higher, following the US market lead, and rebounding modestly from recent multi-month lows.

On the day, May 13 London wheat closed GBP0.75/tonne higher at GBP192.75/tonne and with new crop Nov 13 GBP0.10/tonne firmer to GBP182.95/tonne. May 13 Paris wheat settled EUR1.75/tonne higher at EUR241.50/tonne.

The pound rose following the news that the UK had managed to avoid a triple dip recession courtesy of growth of 0.3% in Q1 of 2013, beating forecasts of growth of 0.1%, and fears of negative growth thereby signalling recession.

That kept a lid on UK price rises.

French grain exports from the main hub of Rouen fell 45% week on week to just under 88 TMT, including 33,370 MT of soft wheat. Morocco was the main destination for the latter, along with 4,400 MT heading for the UK.

MDA CropCast estimated the world wheat crop at 676.4 MMT, up 200 TMT from last month. Increases for Canadian output more than offset reductions to US production.

Bangladesh received a lowest offer of USD314 CIF in a tender to buy 50 TMT of optional origin wheat, India is thought to be the most likely seller.

Russian spring grain plantings are 8.8% complete at 2.65 million ha, well ahead of last year's pace of 1.22 million ha.

The International Grains Council (IGC) said today that global corn production in 2013/14 is expected to rise by 10% in 2013/14 to a record 939 MMT.

They also said that 2013/14 world wheat production is forecast to rise more modestly by around 4% to 680 MMT this year.

Despite the current poor UK crop conditions things look a whole lot rosier elsewhere around the world, especially in the Black Sea countries, frequently the cheapest sellers.