EU Grains Open The Week In The Red

Posted by Nogger - a legend in his own mind at 10:14 | Categorized as

27/07/15 -- Even before EU markets opened, the overnight US grains were trading heavily into the red following an 8.5% fall in the Chinese stock market - the largest one day drop since 2007 - on renewed concerns over the economy there.

With Europe now in the middle of harvesting, that was all it needed to see London and Paris grains begin the week in defensive mode.

At the close Nov 15 London wheat was GBP1.80/tonne lower at GBP121.50/tonne, Sep 15 Paris wheat was EUR4.25/tonne easier at EUR181.50/tonne, Aug 15 Paris corn was EUR1.75/tonne lower at EUR176.75/tonne and Aug 15 Paris rapeseed slumped EUR10.50/tonne at GBP373.75/tonne.

Reuters say that the 2015 French wheat crop should come in at, or up to 1MMT above, last year's 37.5 MMT harvest despite recent dryness.

French wheat yields in the north are surprisingly good, as too are hagberg levels - unlike last year. Proteins are mixed however.

FranceAgriMer said on Friday that the French wheat harvest was 60% done as of last Monday, it's probably about 75% complete now.

The German wheat harvest is gathering pace, but with only an average crop expected, compared to last year's bumper harvest. There's "no clear picture yet" on quality, Reuters say. Agritel estimate production down 10% at 24.9 MMT.

The Polish wheat harvest is underway, but slowed by recent rain. Widespread harvesting won't begin until August though. That could come in at around 10.6 MMT, down 15% on last year, say Sparks Polska.

The UK wheat harvest is estimated around 14.5-15.5 MMT versus 16.6 MMT last year, but above the 5 year average of 14.4 MMT, Reuters say.

The UK barley harvest has now progressed north of the M62 judged by my weekend observations.

Ukraine said that it had exported 1.74 MMT of grains already this season, with a further 207,000 MT loaded and waiting to go.