EU Wheat Ends Lower On Bearish USDA Data
12/10/11 -- EU closed with Nov London wheat down GBP3.55/tonne to GBP147.45/tonne and Nov Paris wheat falling EUR6.00/tonne to EUR185.75/tonne.
Grains effectively gave up virtually all of yesterday's gains on the back of a surprisingly bearish (for wheat) USDA report.
They pegged world wheat production 3 MMT higher this month than last, including a 3 MMT hike for output in Kazakhstan (although at 19 MMT that's probably still too low) and an extra 1 MMT coming onto the market from Australia.
In addition, global consumption was pegged 2.4 MMT lower than last month pushing projected world ending stocks next summer to a ten year high of 202.4 MMT, fully 7.8 MMT higher than last month and what the trade was expecting.
World export estimates were increased for Russia and Australia by 2 MMT each and for Kazakhstan and Canada by 1 MMT each, cutting the US share of the global export market by 2 MMT to 26 MMT - 10 MMT or 28% below 2010/11.
World corn production this season was increased by more than 5 MMT, with 3 MMT of that coming from Ukraine despite a lower estimate for US output. World ending stocks were seen at 123 MMT, up almost 6 MMT on last month and 3 MMT more than anticipated, with Chinese production getting a surprise 4 MMT boost to 182 MMT.
On a domestic front news that UK unemployment hit a 17 year high and that there are more 16-24 year olds out of work than ever before hardly inspires confidence in an economic recovery any time soon.
Grains effectively gave up virtually all of yesterday's gains on the back of a surprisingly bearish (for wheat) USDA report.
They pegged world wheat production 3 MMT higher this month than last, including a 3 MMT hike for output in Kazakhstan (although at 19 MMT that's probably still too low) and an extra 1 MMT coming onto the market from Australia.
In addition, global consumption was pegged 2.4 MMT lower than last month pushing projected world ending stocks next summer to a ten year high of 202.4 MMT, fully 7.8 MMT higher than last month and what the trade was expecting.
World export estimates were increased for Russia and Australia by 2 MMT each and for Kazakhstan and Canada by 1 MMT each, cutting the US share of the global export market by 2 MMT to 26 MMT - 10 MMT or 28% below 2010/11.
World corn production this season was increased by more than 5 MMT, with 3 MMT of that coming from Ukraine despite a lower estimate for US output. World ending stocks were seen at 123 MMT, up almost 6 MMT on last month and 3 MMT more than anticipated, with Chinese production getting a surprise 4 MMT boost to 182 MMT.
On a domestic front news that UK unemployment hit a 17 year high and that there are more 16-24 year olds out of work than ever before hardly inspires confidence in an economic recovery any time soon.