French Wheat Lower On Export Downgrade, Increased Stocks

15/01/14 -- EU grains were mixed, with Paris wheat falling on a French stocks upgrade from FranceAgriMer.

Jan 14 London wheat closed GBP0.25/tonne firmer at GBP154.750/tonne and new crop Nov 14 ended the day up GBP0.35/tonne at GBP147.10/tonne. Mar 14 Paris wheat fell EUR2.00/tonne to EUR193.00/tonne, Mar 14 Paris corn was unchanged at EUR172.50/tonne and Feb 14 Paris rapeseed rose EUR1.25/tonne to EUR363.00/tonne.

FranceAgriMer reduced their forecast for French wheat exports outside the EU from 11.8 MMT to 11.5 MMT, resulting in a corresponding 300 TMT hike in ending stocks from 2.4 MMT to 2.7 MMT.

The move was due to stiff export competition into the world's leading wheat buyer, Eygpt, they said.

French corn stocks were pegged 200 TMT lower than previously forecast at 2.9 MMT due to increased on-farm use, they added.

The Ukraine Stats Office said that this season's grain harvest came in at just under 63 MMT, including nearly 22.3 MMT of wheat and a record 30.9 MMT of corn.

Russia said that they would resume grain purchasing for the state intervention fund on Jan 21. Buying was halted for Christmas and New Year.

Jordan bought 50 TMT of the 100 TMT of optional origin wheat that they tendered for. Bangladesh are re-tendering for 50 TMT of wheat after the original seller failed to supply the goods on time.

India’s Farm Ministry estimated the 2014 wheat crop at a record high 100 MMT.

Egypt's GASC were said to be back in the market late in the session tendering for wheat for Feb shipment.

Reports of a fire at one of Germany's largest rapeseed crushing plants in Rostock could be negative for rapeseed demand.