EU Wheat Close - Tuesday

30/11/10 -- EU wheat futures closed mixed Tuesday with Jan11 London wheat down GBP0.05 to GBP179.20/tonne and Nov11 London wheat down GBP1.10 to GBP149.90/tonne. Jan11 Paris wheat closed up EUR1.75 to EUR224.00/tonne and Nov11 Paris wheat was up EUR0.75 to EUR200.00/tonne.

The weak euro helped Paris wheat close mostly in positive territory bit pressured London wheat a little.

Egypt are tendering for wheat again, looking for various origin grain including French, US, Canadian, Australian and Argentinean. It will be interesting to see who scores as the cheapest this time round.

The EU hardly needs to fight to win any more export business than it already has at the moment.

Algeria are also tendering for at least 50,000 MT of wheat today, and Jordan are in the market for 100,000 MT each of wheat and barley.

Russian winter grain plantings are seen 20% down. Whilst spring sowings will increase it seems unlikely that they will compensate for a shortfall of this magnitude. It seems to be becoming increasingly likely that they will turn to importers in 2011, and are probably ruled out as a major force in the export market until 2012.