EU Grains Close

Posted by Nogger - a legend in his own mind at 19:25 | Categorized as

29/06/11 -- EU grains finished higher but off session highs with July London wheat up GBP4.00 to GBP171.50/tonne and with new crop Nov rising GBP4.25/tonne to GBP168.50/tonne. Nov Paris wheat closed EUR4.75/tonne higher at EUR199.75/tonne whilst May12 also rose EUR4.75/tonne to EUR205.75/tonne.

Spillover strength from a sudden reversal in fortunes of US grains got EU futures off on a firm footing. Greece got it's austerity measures through parliament mid-afternoon lending further support.

The pound was already taking a bit of a battering prior to that news filtering through, which maybe explains why London wheat was a bit firmer than it's Parisian cousin.

Reports out of France suggest that what has been cut there so far is throwing up highly varied yields. That will keep everybody guessing on final output numbers for some time yet.

US markets opened sharply higher but were starting to ease off towards the close of European trading, with traders seemingly reluctant to open up fresh longs ahead of tomorrow's USDA reports.

They will report on US stocks and acreage numbers, the International Grains Council will also release their latest supply and demand estimates.

After those numbers are released the crucial question is will the funds fancy returning for another foray at attempting to push prices higher again.