EU Grains Foloow Chicago To Post Multi-Month Highs

20/04/16 -- EU grains closed mostly firmer, drawing good support from surging US prices in Chicago.

At the finish, front month May 16 London wheat was up GBP1.70/tonne at GBP107.40/tonne, May 16 Paris wheat was EUR4.75/tonne higher at EUR155.75/tonne, Jun 16 corn was up EUR4.75/tonne to EUR163.75/tonne and May 16 rapeseed jumped EUR3.00/tonne at EUR379.25tonne.

This was the highest close on a front month in London wheat since late January, the best of the calendar year so far on corn and the highest since early December on rapeseed.

Russian shipping data shows that their wheat exports fell last month to 1.78 MMT, down 215% versus the shorter month previously. Egypt was the largest home taking 28% of all exports, with Turkey (11%) in second and Iran (8.7%) in third.

Russia's corn exports remain relatively strong by comparison, down only 2.8% versus February, and up 53% year-on-year, at 669,400 TMT. Turkey was the top buyer last month with 21.6% followed by the Netherlands with 20.7% then South Korea with 19.4%.

UkrAgroConsult expects 2016/17 Ukraine wheat production to reach 19.8 MMT, up from its previous estimate of 18.5 MMT. That's falling into line with other analysts's ideas that the worst is now over for Ukraine wheat.

There's some talk of current low prices cutting EU corn plantings from current forecast levels.

Plantings are certainly slow in with France, only 4% done versus 17% complete a year ago in last week's report from FranceAgriMer.