EU Grains Grind Lower

16/06/16 -- EU grains closed mostly weaker for a third day, with with Jul 16 London wheat down GBP0.90/tonne at GBP108.55/tonne, Sep 16 Paris wheat falling EUR1.75/tonne at EUR162.50,tonne, Aug corn was EUR3.00/tonne lower at EUR182.50/tonne and Aug 16 rapeseed was down EUR5.00/tonne to EUR364.25/tonne.

US gains were red across the board, and that sentiment spilled over into European trade.

Yet again fresh news was lacking, and down seems to be the route of least resistance.

Saudi Arabia tendered for 300,000 MT of hard wheat. with the results expected over the weekend. Algeria were said to have bought 150,000 MT of optional origin wheat for Aug/Sep shipment.

Egypt may soon return to the market, having bought 5 MMT domestically in recent months from their newly harvest 2016/17 crop, say the HGCA.

Wet weather continues across France and most of central Europe. Rain makes grain is the old adage, so yields could be bumper this year, but what about quality? Is France in for an abundance of low-quality wheat, much as we saw a couple of years ago?

Only time will tell, but it certainly looks to be a possibility.

The Spanish Association of grain traders said that they expect yields to be significantly higher this year, with winter wheat production forecast 33.9% higher at 7.26 MMT. Barley output is seen rising even more - up 61% to 10.3 MMT.