EU Grains Lower As Harvest Nears

14/06/16 -- EU grains mostly lower as the 2016 harvest nears and the nearing Brexit referendum nears causing some "risk off" mentality.

Front month Jul 16 London wheat closed down GBP2.30/tonne at GBP109.45/tonne, Sep 16 Paris wheat was EUR3.75/tonne easier at EUR165.50/tonne, Aug corn closed EUR1.75/tonne lower at EUR186.00/tonne and Aug 16 Paris rapeseed closed EUR2.75/tonne weaker at EUR377.25/tonne.

Fresh news was lacking and the market is conscious that new crop will soon be upon us. Whilst Europe may have made sterling efforts to shift last season's crop, carryover into 2016/17 remains much larger than normal.

Excessive wetness concerns in France add support for now, at least until the harvest there begins and we get some firm reports on yields from the field. Rains are persisting in the northern parts of France.

Russia said that they'd planted 13.6 million ha of spring wheat, which is 103.2% of the original Ministry forecast. Production forecasts their this year are creeping higher.

Spring barley planting is said to be 96.1% done on 7.8 million ha.

Russian customs data shows that they exported 13.436 MMT of grains Jan 1 to Jun 14 this year, of which 56% (7.73 MMT) was wheat.

That takes grain exports since the start of the season to 36.35 MMT, of which wheat accounts for 66% (23.79 MMT).

Rains in Australia are strengthening the prospect of a good harvest there for 2016/17. with Abares now calling their wheat crop at 25.4 MMT vs the 24.5 MMT previously expected.

The reduced their canola production estimate from 3.27 MMT to 3.2 MMT.