London Wheat With A Couple Of Pounds Of 4-Year Low

09/06/14 -- EU grains closed mostly lower after an attempt to rally proved to be short lived. News that China had banned the importation of US DDGS with immediate effect due to their possible "contamination" with the unapproved MIR 162 variety had the US corn market under pressure, and that weakness spilled over into the rest of the sector.

The day ended with Jul 14 London wheat down GBP2.50/tonne at GBP142.50/tonne and with new crop Nov 14 London wheat closing GBP1.55/tonne lower at GBP141.55/tonne. Nov 14 Paris wheat closed down EUR2.25/tonne at EUR190.75/tonne, Aug 14 Paris corn was down EUR1.00/tonne to EUR177.50/tonne and Aug 14 Paris rapeseed was EUR0.25/tonne firmer at EUR344.50/tonne.

Spring grain planting in Ukraine, Russia and Kazakhstan is almost complete in a timely manner. The 15-day forecast is leaning wetter in Russia and Kazakhstan which will suit, Ukraine is seen a bit drier than normal, which also won't go amiss.

APK Inform said that Ukraine's seaports had exported 1.32 MMT of grains in May, down from just over 2 MMT in April. That total included 454 TMT of wheat and 633 TMT of corn.

The Ukraine Ag Ministry said Ukraine has exported 31.5 MMT of grains to Jun 6, and will end the season exporting a record total of 33 MMT, up 43.5% versus 23 MMT in 2012/13. Some are suggesting that good spring rains in Ukraine might offset the anticipated reduced inputs meaning that yields aren't down too much this year after all.

Morocco are tendering to buy 163,500 MT of soft wheat on the local market, in it's first purchase of the new campaign.

Old crop Jul 14 London wheat is now within less than a couple of pounds of being at the lowest level for a front month in almost 4 years.

China said that it had already harvested more than 60% of it's winter wheat crop. The ongoing dispute with the US over MIR 162 corn, which has virtually halted US corn exports to the country, looks no closer to being resolved after China banned the import of all US DDGS.

Harvest pressure from the Black Sea region is imminent, they'll also begin cutting barley in the south of France very shortly too.