EU Wheat Closing Comments

November London wheat closed Friday GBP1 higher at GBP105.50/tonne and November Paris wheat was up EUR1.75 at EUR141.75/tonne.

News that Brussels granted export licences for 628,000 MT of wheat this week was supportive as that is a pretty big number, especially for this time of year. That takes cumulative exports to 17.5 MMT with two weeks left to go in this marketing year, better than expectations.

UK exports are also holding up, with 279,000 MT shipped out in April and a 55,000 MT vessel currently loading for Vietnam, seeing us on target to at least match Defra's forecasts for the current marketing year.

Saudi Arabia is tendering for a whopping 990,000 MT of high protein wheat with the results expected sometime over the weekend. It seems that German wheat might get a look in, although the trade considers that French wheat is out of the equation.

US firm Informa Economics surprised the market by cutting its estimate on US corn plantings this year to 89.3 million acres from 89.6 million previously. With spring planting having been concluded earlier than normal due to beneficial weather most analysts had expected a small acreage increase.

Informa also pegged US spring wheat plantings at 13.5 million acres, which is 400,000 lower than the USDA's latest estimate.