EU Grains End Lower Across The Board For The Week

04/11/16 -- EU grains closed mostly lower on the day, and lower across the board for the week.

The day ended with Nov 16 London wheat up GBP0.70/tonne at GBP138.10/tonne, Dec 16 Paris wheat was EUR0.50/tonne lower at EUR161.75/tonne, Feb 17 Paris rapeseed ended EUR4.75/tonne weaker at EUR390.75/tonne and Nov 17 Paris corn was down EUR0.75/tonne at EUR163.25/tonne.

For the week that puts London wheat GBP0.90/tonne easier, with Paris wheat down EUR2.75/tonne, rapeseed EUR9.25/tonne weaker and corn EUR3.75/tonne lower.

Sterling was higher versus both the US dollar and euro this week, despite the Brexit confusion. The US dollar of course is pre-occupied with next week's election and the daily twists and turns in the polls stateside.

The HGCA report that last month was the driest month of the year so far, and the driest October since 1972! This could certainly already have implications on plantings and production levels in 2017.

With the UK already expecting another year of reduced rapeseed plantings for 2017 due to the neonicotinoid ban, and factoring in current crop losses from poor establishment and pest damage, some are now predicting that the total UK rapeseed harvested area in 2017 could be the lowest since 2000.

Brussels granted 418 TMT worth of EU soft wheat export licences this past week, up from a paltry 220 TMT the previous week. That takes the total volume issued so far to 8.2 MMT, some 0.9 MMT (or 12.3%) more than this time a year ago.

FranceAgriMer reported the French corn harvest to be 79% complete, up from 60% done a week ago and versus progress of 82% this time last year.

French winter wheat planting was said to be 78% complete versus 60% a week ago and 8 points down on a year ago. Winter barley is 89% sown versus 74% last week and 96% this time last year. The cold snap expected over the next few days will be a worry.

Ukraine reported their 2016 harvest to be 90% complete at 55.9 MMT. That includes 16.87 MMT of corn off 67% of the planted area so far. Winter wheat plantings in the country are said to be 93% complete along with 80% of the intended winter barley area.

Strategie Grains said that they expect the total EU soft wheat area to be stable at 24.3 million ha for next year's harvest.