EU Grains Dip Again, London Wheat Plays Catch-Up

Posted by Nogger - a legend in his own mind at 09:05 | Categorized as

30/08/16 -- EU grains finished mixed, but mostly lower again. London wheat re-opened from the Bank Holiday playing catch-up with Chicago wheat which hit 10-year lows yesterday.

The day ended with Nov 16 London down GBP1.85/tonne at GBP123.90/tonne, Sep 16 Paris wheat was EUR1.75/tonne firmer at EUR155.75/tonne, although new crop 2017 months were lower. Nov 16 corn was down EUR0.50/tonne at EUR161.50/tonne and Nov 16 rapeseed fell EUR0.75/tonne to EUR370.50/tonne.

The EU Commission cut their forecast for this year's domestic wheat harvest from 144.5 MMT to 142.0 MMT, cutting exports from 29.0 to 26.3 MMT. Production in 2015/16 was 151.6 MMT and exports amounted to 32.7 MMT.

Forecasts for this year's corn harvest were trimmed from 65.5 MMT to 65.2 MMT, but still 12.4% above the 58.0 MMT produced last year.

Jordan bought 50,000 MT of optional origin hard wheat in a tender. Tunisia tendered for 134,000 MT of soft wheat and 75,000 MT of feed barley.

Algeria said that severe drought had cut their 2016 grain harvest by 17.5% to 3.3 MMT. That will hurt their aim to try to reduce their dependency on foreign imports.

Russia said that it's grain harvest was 65.3% done at 89.3 MMT. Wheat is 68.5% harvested at 61.8 MMT and barley 79.9% done at 16.3 MMT.

Russian autumn grain plantings for the 2017 harvest are already complete on 1.9 million ha, or 11.3% of the planned area.

Ukraine said it's 2016 harvest is 68% done, producing a crop of 38.27 MMT to date. The 2016 corn harvest has now started. Planting of winter rapeseed for 2017 is 63% complete on 456k ha.

The 2016 French malting barley harvest is down 20-30% according to private estimates. Prices have increased 15-20% since harvest, report Reuters. Exports are expected to be curtailed as the bulk of the crop will be consumed on the domestic market this season.