EU markets lack direction
European markets continue to sit on the line, torn between larger than expected wheat crops and tight American corn supplies.
“The US wheat market is currently eyeing cautiously what is going on in North Dakota’s harvest,” said a report by analyst Agritel.
“This is three weeks late due to late spring seeding, and yields and quality are said to be disappointing.”
European harvest was back underway after wet weather disruptions, with declining wheat quality supporting milling premiums.
“Strategie Grains currently see 82% of German wheat crop of bread quality, down from its previous estimate of 93%,” said a report by HGCA.
In Russia, farmers had cut 48.5m tonnes of grain from 17.2m ha (42.5m acres) by 16 August, including 33.6m tonnes of wheat, 8.87m tonnes of barley and 300,00t of rapeseed.
“It seems that the harvest in Russia should be good with current yields said to be over 2009’s,” said the Agritel report.
Ukraine’s harvest was nearing completion, and the Ukrainian Ministry of Agriculture was expecting wheat production to 22.6m tonnes against the US Department of Agriculture’s latest forecast of 21m tonnes.
Exports from the Black Sea were weighing on market sentiment, but strong buying demand from Algerian and Saudi Arabia was helping to support prices, it added.
