EU Wheat Closing Comments

It was a see saw kind of a day today, with the pound opening at something like USD1.4940 early doors before climbing back above the psychologically important USD1.50 mark to reach close to USD1.51 just before midnight.

EU wheat closed mostly a little firmer, with March London wheat ending unchanged at GBP94.55/tonne and May Paris wheat EUR0.50 higher at EUR126.75/tonne.

There's a little bit of optimism that the worst might be over for EU wheat, with prices here now pretty competitive, albeit aided by an ailing pound and euro, and some export interest coming to the surface.

Weather conditions in Eastern Europe look like they may have caused some damage to wheat crops, although it is still a little early to quantify any losses.

The word from Ukraine is that a couple of thaws earlier in the year, that were subsequently followed by a rapid plunge in temperatures, will have caused some fairly significant damage. Some spring replanting will have to take place here, if growers can afford the cost.

Unconfirmed reports, of new legislation from the recently elected government restricting pesticide imports into the country could also pose some problems, if they are accurate.