EU Grains Close - Wednesday
10/08/11 -- EU grains finished higher with Nov London wheat up GBP1.30/tonne to GBP162.00/tonne and with May climbing GBP1.75/tonnne to GBP169.45/tonne. Nov Paris wheat was EUR1.50/tonne higher to EUR195.00/tonne whist May12 also rose EUR1.55/tonne to EUR198.75/tonne.
The pound was down after the Bank of England lowered it's growth forecast for this year and also said that inflation could hit 5%, well above the target rate of 2%.
FranceAgriMer raised their French wheat production estimate by 1.3 MMT to 33.3 MMT, with yields upped to 6.6 MT/ha, aided by July rains.
They also pegged the French rapeseed crop at 5.3 MMT, an increase of 10.4% on last year.
Wet weather continues to disrupt the harvest both at home and also in northern France, Germany and Poland.
The USDA are out tomorrow with their August crop estimates and are expected to lower US wheat production a tad. I expect them to increase production and exports in both Russia and Ukraine whilst also lifting their output estimate for the EU.
US corn production is seen being lowered after July heat damaged yield potential, but the USDA's capacity to spring a surprise should not be underestimated.