EU Grains Lower On Harvest Pressure, Black Sea Competition

22/07/15 -- EU grains closed lower across the board on harvest pressure, stiff foreign competition.

Nov 15 London wheat finished down GBP0.50/tonne at GBP123.00/tonne, Sep 15 Paris wheat was EUR2.25/tonne easier at EUR186.50/tonne, Aug 15 Paris corn was down EUR1.75/tonne to EUR178.75/tonne, whilst Aug 15 Paris rapeseed was down EUR1.00/tonne to EUR388.50/tonne.

Russia's clean sweep in yesterday's GASC tender set the tone. French wheat was comfortably out-priced in that.

Reports of better than expected yields in both Russia and Ukraine, added more pressure, along with the knowledge that carryover stocks in both Europe and Russia are much larger than normal this year.

Russia said that it's 2015 harvest was now 15.4% complete at 26.6 MMT, and that yields are up 6.6% at an average of 3.7 MT/ha.

Wheat accounts for 20.5 MMT of that total, for which the harvest is now past 20% done. Wheat yields this year are said to be 5.3% higher than in 2014 at 3.79 MT/ha.

Ukraine said that it had exported 1.57 MMT of grains already so far this season. That includes 764 TMT of corn, 426 TMT of wheat and 382 TMT of barley. A further 331 TMT of grains are said to be loaded and awaiting customs clearance.

That would take total exports in July so far to over 1.9 MMT.

The wheat harvest is progressing well in France aided by fine weather, said Agritel. This, combined with a higher euro vs US dollar exchange rate, put the market under further price pressure today, they added.