New Near 6-Year Lows For London And Paris Wheat

02/03/16 -- EU grains closed mostly lower again - with new near 6-year lows for both London and Paris wheat.

At the finish, friendless front month Mar 16 London wheat was down GBP0.60/tonne at GBP99.15/tonne, Mar 16 Paris wheat fell EUR1.50/tonne to EUR143.50/tonne, Mar 16 Paris corn was up EUR1.50/tonne to EUR148.00/tonne and May 16 Paris rapeseed was down EUR3.50/tonne to EUR343.50/tonne.

Growers are understandably reluctant sellers at these levels, but buyers are equally relaxed.

Spring will soon be here, bits and bobs of early plantings have already taken place in parts of the Black Sea region. Easter is early this year, and the way things are looking so too will be turnout, traditionally timed to coincide with Easter weather permitting, for dairy farmers.

Hence there isn't much business being transacted.

In Ukraine, the Ag Ministry said that spring grain plantings will rise 1.7 million ha. This is essentially due to 1.15 million ha of winter grains that never got planted due to the very dry autumn, and replanting of a further 600k ha of winter sown crops that failed to germinate.

Agritel said that sunflower will be the "big winner" of these available extra spring acres.

APK Inform forecast Ukraine's all barley area for the 2016 harvest at 3 million ha, a 5% rise on last year. That consists of 816k ha (-36%) of winter barley and 2.15 million ha (+22%) that will be spring sown.

Even so, as recently as 2010 Ukraine was planting 4.5 million ha of barley, showing how things have altered. Spring corn, sunflower and soybeans have all seen dramatic increased in growth.

Jordan bought 100,000 MT of optional origin barley and cancelled a similar tender for 100,000 MT of wheat.

Algeria said that they'd increased wheat imports in January by 15% to 506,000 MT.

Egypt's GASC bought 180,000 MT of wheat in a late tender, split one cargo of Ukraine origin and two of Romanian.