Futures Close Report 13th September

Strategie Grains cut its estimate for this year’s EU soft wheat harvest for the seventh consecutive month, now seen at 126.8 million tonnes, down 0.9 million from last month, due mainly to reductions in Germany, the Benelux, Denmark, Ireland, Austria, Finland and Sweden.  EU Exports forecast was cut by 1 million tonnes due to black sea competition and the relative tightening of EU Wheat balance sheet.    For Maize the forecast was cut by circa 5% as a consequence of the dry summer conditions over France and Central Europe.  EU Maize was seen at a total of 58.4 million tonnes significantly lower than the 61.3 million tonnes forecast last month.  Last years harvest was 59.3 million tonnes.

UK farmers are reluctant sellers as markets drift lower – pace of origination has slowed with all merchants reporting similar conditions – with farmers currently engaged with land work this seems set to continue.  September is generally always a slow month from this perspective.