EU Grains Consolidate Lower

30/03/16 -- RU grains closed mostly in the red, with only rapeseed managing to resist. For EU wheat it was "Turnaround Tuesday" even though it was Wednesday - still one day behind US markets.

At the finish, front month May 16 London wheat was down GBP1.00tonne at GBP105.00/tonne, May 16 Paris wheat was EUR3.75/tonne easier at EUR155.25/tonne, Jun 16 corn was down EUR2.00/tonne to EUR155.25/tonne and May 16 rapeseed was down EUR1.25/tonne at EUR367.00/tonne.

There aren't enough areas pf real concern around the globe for wheat, corn or soybeans to get the market on fire and sustain a rally just yet...

Europe: autumn planted crops have escaped the winter largely unscathed, and spring planting is now underway, weather conditions generally favourably. The same could also be said of Russia,

There are areas of concern for winter wheat in the US and Ukraine, but for now at least these aren't sufficiently large to outweigh the production potential of Europe/Russia, especially given the large carryover stocks from last year.

Australia: harvesting here is done amd production is good. Canada: spring weather favourable for early sowing.

South America: Brazilian soybeans past halfway harvested and a record crop expected. Argentina, a bit wet in places, bit that ultimately did't do too much harm last year.

The US: early corn planting underway, a bit wet in the south though, but it's still early days.

Spec money still shying away from commodities in general. Chinese economic concerns cap upside potential of global markets.

The USDA will report on prospective US spring plantings tomorrow. Both corn and soybean acres are expected to increase year-on-year.

Morocco announced a tender for 360 TMT of soft wheat together with 45 TMT of durum and 8 TMT of corn for Apr/May delivery.

Jordan cancelled an optional origin 100 TMT hard wheat tender and immediately re-issued another for Sep/Oct shipment.