EU Grains End Higher On Spec Buying
11/03/14 -- EU grains began the day lower, but clawed their way mostly higher by the end of the trading session as US markets turned around on fund buying.
Mar 14 London wheat closed GBP1.30/tonne firmer at GBP164.75/tonne, whilst new crop Nov 14 was GBP2.20/tonne higher at GBP156.90/tonne. May 14 Paris wheat closed EUR3.25/tonne higher at EUR210.25/tonne, Jun 14 Paris corn was up EUR0.75/tonne to EUR183.25/tonne and May 14 Paris rapeseed rose EUR1.25/tonne to EUR410.25/tonne.
Spec buying continues to push the market higher. How long this will last is anybodies guess, but this is the casino type environment that we are in at the moment.
Ukraine is getting inundated with offers of financial assistance, including a mooted $15 billion loan from the EU, a $3 billion credit line from the World Bank and a US Senate aid package proposal which is said to include IMF funding.
I'm sure that they will gratefully accept it all, but will we ever see them again?
Agritel said that Ukraine had exported 480 TMT of corn last week, so there's little sign of a slow down there. They've shipped 24.9 MMT of grains (to Mar 7) so far this season, including 15.12 MMT of corn. At that rate they will hit the USDA's corn export target for the season of 18.5 MMT in seven weeks. They've also shipped 7.44 MMT of wheat and 2.14 MMT of barley so far this season.
In addition, Ukraine has exported over 3 MMT of oilseeds so far this season, including more than 2 MMT of rapeseed.
Trade reports suggest that Ukraine 11.5% milling wheat traded at $276/tonne FOB for April shipment today, with corn for May delivery trading at $236.50/tonne.
Morocco bought 260 TMT of wheat on the domestic market in their tender.
In the UK, the HGCA said that "good conditions in the autumn allowed winter drilled crops to establish well and start tillering early. This left crops in a good position going into winter and there are few crops outside the main flooded areas that are of questionable viability, despite the high rainfall across the country."
"The wet weather over the period mid-December through to February has delayed the start of spring crop drilling, although, typically, less than 5% of the area is usually drilled by the end of February. Spring barley drilling has now started on lighter soils in the east of England, with cultivations and drilling a priority as soon as soil conditions allow. Given the increase in winter cropping, spring crop areas are likely to be much lower than in 2013, although positive experiences with spring cropping on heavy land has encouraged more farmers to include spring crops in rotations as part of their black-grass management strategy," they said.
"Given the increase in winter cropping, spring crop areas are likely to be much lower than in 2013, although positive experiences with spring cropping on heavy land has encouraged more farmers to include spring crops in rotations as part of their black-grass management strategy," they added.
