EU Wheat Ends Modestly Lower
11/11/11 -- EU grains ended mixed but mostly a little lower with Nov 11 London wheat down GBP1.00/tonne to GBP148.75/tonne and new front month Jan 12 Paris wheat EUR1.50/tonne easier at EUR184.50/tonne.On the week as a whole Nov 11 London wheat was GBP2.00/tonne lower with Jan 12 Paris wheat falling EUR2.50/tonne.
The reason for the erratic performance of the now expired Nov 11 Paris wheat contract on Wednesday when it posted a huge EUR29.00/tonne intra-day trading range was apparently a lack of available storage for shorts to make delivery against. Rouen, the sole delivery point for Paris wheat, has the full signs hung up.
Stock markets closed 2-3% higher around the globe as Greece swore in a new PM and Italy looks like having a fresh one of their own by Monday morning. Both new incumbents appear to have a more level-headed reputation than their predecessors.
Media reports confirm the sale of UK feed wheat to an un-named US compounder, highlighting the uncompetitive nature of US corn in the ration. A 45,000 MT vessel is expected to sail from Portbury for the US next week. Whether that will be the only such shipment remains unclear.
US analytical firm Informa Economics today released their latest estimates for US crop production in 2012. They estimate a US corn crop of 359 MMT next year, 15% up on this year. US all wheat production is forecast at 61.9 MMT, a 14% increase.