EU Grains Mixed, French Concerns Remain

Posted by Nogger - a legend in his own mind at 15:10 | Categorized as

10/06/16 -- EU grains finished in the red across almost the entire board. Jul 16 London wheat was one exception closing up GBP0.30/tonne at GBP111.60/tonne, Sep 16 Paris wheat was down EUR2.50/tonne at EUR168.50/tonne, Aug corn was EUR0.50/tonne lower at EUR186.00/tonne and Aug 16 rapeseed was down EUR3.00/tonne to EUR379.25/tonne.

For the week, Jul 16 London wheat rose GBP4.15/tonne and new crop Nov 16 rose GBP2.95/tonne. Front month Paris wheat fell EUR0.75/tonne, corn added EUR4.50/tonne and rapeseed was unchanged.

Data out of Brussels puts the volume of EU-28 soft wheat export licences this week at 374,000 MT, down from 633,000 MT last week. That takes the total volume granted so far this season to 29.2 MMT, down 3% year-on-year.

Barley export licences came in at 55,000 MT, with the year to date total now up 7% versus last season at 9.2 MMT.

They also approved 312,000 MT worth of corn imports, taking the total volume issued for those so far in 2015/16 to 12.8 MMT, a 46% rise compared to 12 months ago.

FranceAgriMer cut the proportion of the French winter wheat crop rated good to very good 2 points from a week ago to 79% (87% a year ago). Winter barley G/VG was also cut 2 points to 76% (86% a year ago), as was spring barley to 91% (86%). Corn ratings came in at 75% good/very good versus 84% a year ago.

The French wheat crop was said to be 99% headed, up 12 points in the week. Spring barley is 26% headed versus 10% a week ago and 75% a year ago. Corn planting was unchanged on last week at 98% complete (110% a year ago).

There are concerns there about steadily deteriorating winter wheat and barley conditions plus slow corn sowings and retarded crop conditions.

FranceAgriMer revised up their forecast for French wheat exports to non-EU destinations this year from 12.0 MMT to 12,4 MMT. Wheat ending stocks were trimmed a similar amount to 3.5 MMT.

Algeria bought 100 TMT of feed barley in a tender for August shipment, though to be most likely to end up coming from Ukraine.

Late in the day the USDA released their Jun World S&D numbers, in which they increase EU-28 all wheat exports in 2016/17 to 35.5 MMT, up from 35.0 MMT a month back, and up 7.6% compared to 33.0 MMT this season.

EU-28 2016/17 all wheat production was increased by 1 MMT from last month to 157.5 MMT, down 1.5% on this season's record.

Russia's 2016/17 wheat crop was pegged at 64 MMT (61 MMT in 2015/16), and Ukraine's at 24.0 MMT (27.3 MMT).