EU Grains Mostly Firmer

Posted by Nogger - a legend in his own mind at 12:49 | Categorized as

25/05/16 -- EU grains traded mostly firmer, with Jul 16 London wheat down GBP0.90/tonne at GBP106.30/tonne, Sep 16 Paris wheat was EUR0.75/tonne higher at EUR164.25/tonne, June corn was up EUR0.25/tonne to EUR169.00/tonne and Aug 16 rapeseed closed EUR2.75/tonne higher at EUR373.50/tonne.

The trade is adjusting anticipated EU 2015/16 carryout lower than was forecast a few months ago. News that Ensus are to re-open for a trial period in Jul is adding a bit of support to old crop, which may spill over into new crop too.

Total demand for cereals in UK animal feed production in 2015/16 has been revised up by 1.3% compared with earlier estimates according to the latest Defra UK Supply and Demand estimates released yesterday, noted the HGCA.

A pick up in exports since the close of the first quarter will also help a little those that are still carrying old crop grain.

It's a similar situation on the continent, where Strategie Grains last week increased potential EU-28 2015/17 soft wheat exports, and reduced ending stocks accordingly.

Prospects for 2016/17 production still look good though. The Russian Ag Min today increased his forecast for this year's total Russian grain crop from 104 MMT To 106 MMT.