EU Grains Get Some Help From USDA Report

Posted by Nogger - a legend in his own mind at 09:38 | Categorized as

12/01/17 -- EU grains closed mostly higher following the late release of the January WASDE numbers from the USDA.

At the close Jan 17 London wheat was up GBP1.50/tonne at GBP145.90/tonne, Mar 17 Paris wheat was EUR0.75/tonne higher at EUR169.75/tonne, Mar 17 Paris corn was down a euro at EUR167.50/tonne and Feb 17 Paris rapeseed was up EUR0.25/tonne to EUR414.50/tonne.

Trade was quiet awaiting the USDA data late in European trading hours.

That put the US HRW wheat area for the 2017 harvest 23.3 million acres, which is 12% lower than a year ago. All wheat acres were estimated at 32.38 million ha, down 3.75 million from last year and at the lower end of the range of trade forecasts. This is the second lowest winter wheat area on record, and the lowest since 1909.

Global wheat production, already at a record, was raised even higher this month mainly on larger crops in Argentina, the EU, and Russia.

Global trade was boosted to a new record with stronger import demand from several Asian countries and Brazil. Larger exports for Australia, Argentina, and the EU were partially offset by a decrease for Canada, they said.

EU 2016/17 production was increased 350 TMT to 144.32 MMT, and exports nudged 500 TMT higher to 25.5 MMT. This year's Russian crop was upped 500 TMT to 72.5 MMT.

World ending stocks for 2016/17 were increased 1.15 MMT to 253.3 MMT. Ending stocks-to-use ratio for 2016/17 is now projected at 34.2% versus 34.1% in December and 33.8% a year previously.