EU Grains Close - Tuesday

29/11/16 -- EU grains closed mixed but mostly lower. Firmer crude oil prices helped rapeseed close higher.

At the finish Jan 17 London wheat was down GBP0.95/tonne at GBP138.55/tonne, Dec 16 Paris wheat was down EUR4.25/tonne at EUR161.00/tonne, Jan 17 Paris corn ended EUR1.25/tonne lower at EUR164.75/tonne and Feb 17 Paris rapeseed closed EUR1.75/tonne higher at EUR404.50/tonne.

The GBP/EUR remains hovering around the 1.1750 mark, having fallen below 1.10 in recent weeks, keeping a lid on London wheat price rally attempts. Is this just a corrective period of appreciation, not to be confused with a long term recovery?

Analysts say that first resistance for the pound is now around the 1.1875 level, with stronger resistance at 1.20. A push above the latter would be needed to argue the case for more extended sterling upside.

A drop below 1.1675 would be needed to signal that an interim top has been seen meanwhile, they opine.

Strategie Grains forecast a recovery in EU-28 soft wheat production to 152.9 MMT next year, some 8 MMT above output in 2016, even if below the levels achieved in 2015 (a record 159.4 MMT) and 2014.

They see EU-28 soft wheat exports in 2017/18 at 30 MMT, up 5.7 MMT on this season.

Egypt's GASC bought 240,000 MT of Russian wheat in a tender for Jan 2-11 shipment at prices slightly below those paid last time.

Russia reported their 2016 total grain harvest to be 96.7% complete at 124.4 MMT. Corn harvesting is 82.6% done at 13.9 MMT.

Ukraine's harvest is now 95% complete at 62 MMT, including 22.9 MMT of corn off 86% of the planned area.