EU Grains End Higher Absorbing USDA Data

Posted by Nogger - a legend in his own mind at 08:13 | Categorized as

13/04/16 -- EU grains closed firmer across the board for once, following the release if Tuesday's WASDE report.

At the finish, front month May 16 London wheat was up GBP0.95/tonne at GBP105.30/tonne, May 16 Paris wheat was EUR2.25/tonne higher at EUR155.25/tonne, June corn jumped EUR2.50/tonne to EUR155.75/tonne and rapeseed closed EUR2.75/tonne higher at EUR369.75/tonne.

Today's trade maybe got a lift from the notion that EU wheat carryout this year is now seen down from the 20.16 MMT predicted a month ago to 19.33 MMT this time round, although that's still a 40% increase compared to last season.

That came courtesy of increased domestic usage, and despite a 500,000 MT hike in the size of last year's crop (now seen at 160 MMT) and EU-28 2015/16 exports being lowered 0.5 MMT to 32 MMT "on account of lagging export licenses and greater domestic usage."

That's the first nod that we'd had from the USDA this season that they were maybe being over-optimistic with EU wheat exports.

The USDA also lowered prospective EU-28 corn exports this season EU imports by 1 MMT to 15 MMT this season "on expectations that a greater use of wheat in feed rations curbs demand for corn. In addition, the pace of issuing import licenses has slowed in recent months."

That's all for now folks....!