EU Wheat Close

17/11/10 -- EU wheat futures closed higher Wednesday, reversing some of the recent losses with Nov10 London wheat up GBP3.75 to GBP163.25/tonne and Nov11 London wheat GBP0.75 higher at GBP141.75/tonne. Jan11 Paris wheat closed EUR2.75 higher at EUR212.75/tonne and Nov11 Paris wheat was up EUR0.75 to EUR190.00/tonne.

Today's market action appeared to be consolidation from recent steep losses. There was some evidence of bottom-picking and viewing the declines of the last few days as a buying opportunity.

As far as UK wheat is concerned the latest customs data suggests that exports are running well ahead of normal and that either a very severe correction is due, or stock will be extremely tight in the spring.

The UK has exported 854,000 MT of wheat during the first three months of the 2010/11 marketing yea. That means that we've already shipped two thirds of what Defra expect us to export for the entire marketing year in the first quarter alone.

The euro remains weak on concerns over Irish, Spanish and Greek debt.

China is keeping the market guessing over if and what it will do with regards to curbing spiralling domestic food price inflation and an appreciating yuan.