EU Grains Mixed, Rapeseed Lower On USDA Report

12/09/16 -- EU grains finished mixed, rapeseed took a knock from late weakness in soybeans following the release of the September WASDE report from the USDA.

The day ended with Nov 16 London up GBP0.60/tonne at GBP121.95/tonne, new front month Dec 16 Paris wheat was unchanged at EUR158.25/tonne, Nov 16 corn was also unchanged at EUR160.75/tonne and Nov 16 rapeseed fell EUR3.00/tonne to EUR375.25/tonne.

Wheat got a late boost from the USDA cutting global ending stocks from 252.8 MMT to 249.1 MMT versus trade expectations of a more marginal drop to 251.4 MMT.

That triggered modest short-covering gains in US futures and helped drag EU wheat off the lows of the day.

In Europe, production was cut from 147.5 MMT to 145.3 MMT (down 9% vs 160 MMT a year ago) and 2016/17 export potential trimmed from 27 MMT to 26 MMT (down 25% year-on-year). EU wheat imports were raised 1 MMT to 7 MMT.

Elsewhere, production in Russia and Ukraine was unchanged at 72 MMT and 27 MMT respectively, but Kazakhstan was increased 1.5 MMT to 16.5 MMT. Russia's export potential was left unchanged at a record 30 MT, but Ukraine's and Kazakhstan's were increased 0.5 MMT each to 15 MMT and 8.5 MMT respectively.

The Ukraine increase came on the back of "projected demand from the EU for feed quality wheat".

The USDA also cut the size of this year's EU corn crop by 1 MMT to 61.1 MMT, but left imports unchanged at 12 MMT. This year's EU rapeseed crop was placed at 20 MMT (down 10% on 22.2 MMT last year).

In other news, APK Inform said that Ukraine seaports exported 819.7 TMT of grains last week, up from 661.4 TMT the previous week. Wheat accounted for 597.3 TMT of that total and barley 222.4 TMT. Thailand was the top home (110.6 TMT), followed by the UAE (67 TMT) and Israel (65.8 TMT).

Russian exports via seaports dropped from 637.1 TMT to 429.8 TMT, with wheat accounting for 391.5 TMT. Top home was Morocco (70.7 TMT).

Agritel said that this year's French corn crop might only make 12.5 MMT due to dry weather. FranceAgriMer cut crop conditions to 55% good/very good on Thursday versus 71% at the beginning of August.