EU Grains Mostly Higher, French Ministry Cut Rapeseed Production Estimate

13/06/16 -- EU grains closed mostly firmer, but off the intra day highs, with Jul 16 London wheat up GBP0.15/tonne at GBP111.75/tonne, Sep 16 Paris wheat up EUR0.75/tonne at EUR169.25,tonne, June corn was EUR01.75/tonne higher at EUR187.75/tonne and Aug 16 rapeseed was up EUR0.75/tonne to EUR380.00/tonne.

APK Inform said that this year's Russia grain harvest would total 105.7 MMT, a 2.1% increase on last year.

That's a lot of grain to shift once again, and would leave them aggressive throughout at least the first three-quarters of 2016/17.

Weekly customs data shows that Russia's grain exports last week were 308.3 MMT - more than double those of the previous week - of which wheat accounted for 210 TMT.

Ukraine's grain exports were also up last week, to 446.7 TMT from 431.6 TMT the previous week. Wheat accounted for 268.2 TMT of that total and corn 175.8 TMT. They will be harvesting new crop barley there soon and will doubtless squeeze all their exports for that into the front end of the season as usual.

Algeria announced a tender for 50,000 MT of optional origin hard wheat for Aug/Sep shipment.

The French Ag Ministry estimated rapeseed yields there this year down 4.9% at 3.39 MT/ha due to excessive rains. They predict production at 5.1 MMT, down 3.7% from a year ago and 2.2% below the 5-year average despite an increase in plantings.

Wet weather has led to a sharp increase in insect damage, along with fungal infestations and other diseases, they said.

The market is concerned that the French wheat crop might be going a similar way.