EU Grains Stocks Estimates Pared Back, But Still At Historic Highs
14/04/16 -- EU grains traded mixed, with wheat unfortunately the weakest leg of the gang.
At the finish, front month May 16 London wheat was down GBP2.20/tonne at GBP103.10/tonne, May Paris wheat was EUR0.50/tonne lower at EUR156.25/tonne, June corn jumped EUR0.50/tonne to EUR156.25/tonne and rapeseed closed EUR2.00/tonne higher at EUR371.75/tonne.
FrnaceAgriMer made a few downwards adjustments to their French 2015/16 grain ending stocks estimates. Essentially these were small downwards revisions to carryout due to better than anticipated exports to North African destinations like Morocco and Algeria that have shown up in recent tenders.
French wheat stocks were cut by 0.6 MMT, and those for barley reduced 0.5 TMT, at the end of the current season.
"Looking ahead, Moroccan millers and the countries wheat trade federation have requested that this season’s import window is extended to the end of May (rather than April), and that next season’s window opens in August (typically October). This suggests further export opportunities for France, but also potentially UK supplies of wheat," noted the HGCA.
Maize end stocks (French corn carryout) were also reduced slightly (by 200 TMT), as a result of higher demand from the domestic starch industry, they added.
It is still worth remembering that these inventory volumes are still historically high, especially with another anticipated bumper crop not far away now.
French analysts Strategie Grains joined the chorus, reducing EU-28 soft wheat ending stocks by 1 MMT to 15.6 MMT.
Looking ahead winter grains in Europe are "in very good condition… with very promising yield outlooks in France, the UK, Germany, central Europe and south east Europe," Strategie Grains said.
