Wheat prices as fears eased for Russian exports of the grain,
and over the damage, to yields at least, of the French crop from persistent
Wheat, which rose
to $8.97 a bushel in early deals in Chicago, showed losses of 3% at one point, before losing most of its gains in a late revival led by corn.
In Europe, Paris
wheat for November closed 1.8% lower, with London wheat ending down
Crop prices as of close, Wednesday
Paris wheat, (November): E255.75 per tonne, -1.8%
London wheat, (November): £189.00 per tonne, -1.5%
Kansas wheat (September): $8.84 per bushel, -1.0%
Chicago wheat, (September): $8.79 ½ per bushel, -0.9%
Chicago corn (December):$8.00 ½ per bushel, -0.4%
Chicago soybeans, (November contract): $16.29 per bushel, -0.4%
The performance was in part influenced by corn, which also showed losses of 2%, before late buying attributed to decreased hopes for rain in the Midwest, firm US ethanol production data and beginning-of-the-month buying.
But the wheat price
decline also followed comments from a government source that Russia's wheat
crop could hit 50m tonnes, enough for an exportable surplus of 11m-15m tonnes.
figure would represent an upgrade from the current forecast of 46m-49m tonnes,
the source told Reuters, and come in well above market estimates of 45m tonnes,
minister, Dmitry Medvedev, on Tuesday said that Russia would maintain an
unspecified exportable surplus, saying that market manipulation was behind a
rise in domestic grain prices.
Furthermore, Canada's winter wheat harvest, albeit a small amount of the national crop, was reported as beating expectations.
"Some producers in Canada's winter wheat harvest areas have started earlier with yield in the 80-100 bushels-per-acre range versus typical yields of 65-70 bushels per acre," broker US Commodities said.
'Favourable for grain yields'
eased for Europe's crop too, with FCStone noting that "in Germany
better-than-expected yields are expected now they are fully into harvesting,
while it is also possible that French yields could rise".
France, less affected by rains than the north, "mean protein levels are being
recorded above 11.2%".
followed an upgrade by France's farm ministry of its estimate for the domestic
soft wheat crop, the European Union's biggest, by 1.6m tonnes to 36.7m tonnes,
putting it well ahead of last year's 34m-tonne result.
wet weather conditions have been favourable for grain yields, in contrast to
the very-dry spring of 2011," the ministry said.
questions remain about the quality of the harvest due to persistent
Highest in two decades
reflected an estimate of a yield of 7.5m tonnes per hectare and, factoring in a
durum crop pegged at 2.4m tonnes, would bring the total French wheat crop to
The US Department
of Agriculture, whose data set world benchmarks, estimates France's all-wheat
crop at 38.0m tonnes, as does the International Grains Council.
The ministry also
raised its estimate for the French barley harvest to 11.3m tonnes, from a previous
estimate of 11.0m tonnes, including a historically high 4.4m-tonne spring
barley crop, up 80% on the 2011 result.
barley harvest is put at a level unseen for over 20 years, thanks to a rise in
area combined with higher yields", pegged a little over 5 tonnes per
'Surprised by the yields'
crop, which overtook Germany's to become the EU's biggest last year, was pegged
at 5.3m tonnes, an upgrade of 200,000 tonnes, but still slightly behind the
2011 harvest "due to lower yields and despite increased area".
the French oilseeds institute, pegged the French rapeseed crop at 5.3m-5.6m
tonnes, citing results from the early harvest.
surprised by the yields," which at 3.3-3.5 tonnes per hectare were above
the five-year average, Fabien Lagarde, the Cetiom technical director, said.
On Tuesday, Oil
World upgraded by 800,000 tonnes its forecast for the European Union rapeseed