EU Wheat Close

20/12/10 -- Jan London wheat closed GBP1.50 higher at GBP192.00/tonne and new crop Nov was up GBP2.50 at GBP162.00/tonne. Jan Paris wheat closed up EUR4.75 at EUR241.00/tonne, whilst new crop Nov climbed EUR3.25 to EUR216.00/tonne.

In the UK we are now within just GBP0.50 of the highest close for a front month contract of all time, GBP192.50/tonne set on 25th Feb 2008. Another milestone today was the July future closing at GBP200.00/tonne.

Continuing with the local theme, the RPA said today that 14,970 MT of barley was sold out of UK intervention last week, leaving 136,000 MT still available for purchase.

Snow and freezing temperatures continue to dog the UK with lows of around minus 14/15C forecast overnight. Late pre-Christmas demand for feed seems to have kicked in over the weekend after another widespread dusting of the white stuff.

Even those livestock farmers who thought that they'd have enough of their own forage to see them through until spring now seem to be worrying over how quickly their stocks are diminishing.

The Russian Grain Union's president said that their grain export ban may extend beyond the existing July 1st deadline. Surprise, surprise. He also forecast that it might be cold this winter. Winter grain plantings are down 14%, he added.

Conflicting reports are coming out of Australia, with some saying that recent wheat crop downgrades have been over estimated. Others suggest the opposite, only time will tell.