London Wheat Sets New Lows

11/06/14 -- EU grains closed mixed, but mostly lower with old crop Jul 14 London wheat setting a new lowest close for a front month in almost years. New crop  Nov 14 also set a sub-GBP140/tonne contract low.

The day ended with Jul 14 London wheat down GBP2.75/tonne at GBP139.75/tonne, and with new crop Nov 14 GBP1.00/tonne lower also at GBP139.75tonne. Nov 14 Paris wheat fell EUR1.00/tonne to EUR189.25/tonne, Aug 14 Paris corn was EUR0.50/tonne easier at EUR177.25/tonne and Aug 14 Paris rapeseed finished EUR0.50/tonne higher at EUR347.25/tonne.

The pound rose above 1.24 against the euro for the first time since late 2012, which didn't help London wheat.

A Bloomberg survey pegged the European wheat crop at a six year high 145.9 MMT, and the second largest ever.

Australia's ABARES trimmed slightly their forecast for the nation's 2014 wheat crop from 24.8 MMT to 24.6 MMT.

Having only just raised their estimate from 95 MMT to 96 MMT, IKAR cut their forecast for Russia's 2014 grain crop to 93.5 MMT, although that's still slightly higher than last year.

Late in the day the USDA raised their estimate for the EU wheat crop to 146.25 MMT from 144.88 MMT. They also increased their outlook on Russia's wheat crop by 1 MMT to 53 MMT.

Russia's 2014/15 wheat export potential was raised by 0.5 MMT to 19.5 MMT, which is now 1 MMT more than this season.