GRAIN MARKETS

Markets have firmed over the past week as weather concerns continue to threaten global corn and wheat production. EU harvests have started around 10-14 days later than normal. This has delayed shipment of new crop supplies to the UK, causing spot premiums to firm as domestic supplies tighten. The amount of France’s soft wheat crop reported as in good or very good condition held at 79% in the week ending July 5. The country’s soft wheat crop is expected to rise 27% on the year to 37.1mln t.

Grain harvests have started in Germany, but have been stalled repeatedly by heavy rainfall. Harvest output has been trimmed to 44.2mln t, included 22.8mln t of wheat. UK new crop is now all about weather, how crops yield and overall quality. Increased domestic demand should provide price support, but talk of a larger percentage of the EU crop potentially only being of feed quality could pressure the UK market. USDA projected a lowerthan-expected US wheat crop in this week’s report as a sharp fall in spring/ durum production more than negated a slight rise in winter wheat.