EU Grains Mixed, Wind Of Change For Old Crop/New Crop London Wheat Spread
05/05/16 -- EU grains trade mostly mixed heading into the close on Thursday, with May 16 London wheat unchanged at GBP107.25/tonne, May Paris wheat also unchanged at EUR160.25/tonne, June corn was another flat month at EUR161.50/tonne and Aug 16 rapeseed was up a euro at EUR363.00/tonne.
It'a a holiday shortened week for many, and it sure feels like it. The new month ha s finally brought some better weather along with it, for the UK anyhow, and hopes are fairly high of some decent crops again this year - even if growers don't fancy the prices on offer much.
The May16/Nov16 London wheat old crop new crop spread has narrowed in the last few days. One key factor to watch for now is if this is the start of a trend.
It might be, given that "imported maize has become even more costly against UK ex-farm feed wheat in the last month, with the premium lifting to almost £34/t last week, say the HGCA.
That might cut corn usual in feed in the final Q4 of 2015/16, to the benefit of wheat.
Suddenly robust UK wheat exports might also provide a late boost in demand for wheat domestically, finally supporting this that carried old crop this far- not that many would call it a winning marketing strategy.
Israel were reported buying 120,000 MT of corn and 40,000 MT of feed wheat, of optional origin in a tender today. Tunisia are in the market for 100,000 MT of optional origin feed barley.
Indian millers are said to have bought at least 140,000 MT of Australian wheat in the past two weeks to mix with its own lower grade stocks.
