EU Grains Rise, More Downgrades For French Wheat And Barley Crops

Posted by Nogger - a legend in his own mind at 11:58 | Categorized as

08/07/16 -- EU grains closed mostly higher to end the week, although Jul 16 London wheat was unchanaged at GBP111.75/tonne. Sep 16 Paris wheat traded up EUR3.25/tonne at EUR159.00/tonne, Aug corn was EUR1.50/tonne firmer at EUR171.00/tonne and Aug 16 Paris rapeseed was EUR2.50/tonne higher at EUR352.50/tonne.

For the week London wheat was up GBP1.75/tonne, Paris wheat gained EUR6.75/tonne, corn added EUR1.25/tonne and rapeseed was down EUR5.25/tonne.

Rapeseed continues to stalk Chicago soybeans.

The 2015/16 season is now officially over, and Europe finished up issuing 31.5 MMT worth of soft wheat export licences, a similar volume to the previous season after things picked up in the second half. Barley export licences totalled 10.2 MMT.

For the first week of the new season Brussels released 209 TMT worth of soft wheat licences and 193 TMT worth of barley licences. They also approved the import of 156 TMT of corn. Wheat exports were thus down 55% on the same week in 2015, with barley licences falling by 53%.

Ukraine said that they've harvested 12% of their planned early grain area producing a crop of 3.86 MMT to date. Yields are up 14% at 3.47 MT/ha.

This total includes 1.61 MMT of wheat and 2.55 MMT of barley. Agritel say that only around 30% of the wheat cut so far is of milling standard after recent rains damaged quality and cut gluten levels too. Better samples are expected once the harvest progresses to the centre of the country however, they suggest.

Russia's harvest stands at 9.6 MMT with yields also up 14% at 4.33 MT/ha. That includes 6.4 MMT of wheat and 2.2 MMT of barley.

French crop conditions continue to decline, with FranceAgriMer slashing 6 points off the good to very good categories for the second week running. The proportion of the crop rates G/VG is now only 59% versus 75% a year ago.

Winter barley was cut 9 points G/VG to 53% and spring barley G/VG is now 67% form 71% a week ago. Corn conditions were up 1 point to 69% G/VG.

They said that the winter wheat harvest was 25% done in Aquitaine and 1% complete nationally. Winter barley harvesting is only 16% complete versus 73% done a year ago as rain stops play.