EU Wheat Closing Comments - Friday

EU wheat closed a volatile week mostly lower Friday with November Paris milling wheat down EUR0.25 at EUR126.50/tonne, and London November feed wheat ending down GBP0.30 at GBP100.50/tonne.

A wildly fluctuating forex market has seen the wheat market all over the place this week. Yet on the week as a whole London November feed wheat fell GBP0.50/tonne, whilst November Paris milling wheat rose EUR0.50/tonne overall.

The pound closed last Friday at 1.5836 against the dollar, and by Tuesday it got within a whisker of falling below 1.57, before doing a complete turnaround and closing at 1.6350 on Friday.

Sterling has also traded in a range of 91-94 pence against the euro this week, staging its best one-day rally in eight months against the euro on Friday.

The sudden improvement in the pounds fortune can be attributed to comments by BoE Markets Director Paul Fisher. He says that QE is working and that the BoE might take the luxury of pausing its bond purchasing program in the face of a tentative recovery.

The minutes of the BoE's last rate decision are due out on Wednesday. These will be scrutinised for evidence that Fisher is speaking for the MPC as a whole, rather than simply 'talking out of his hat'.