EU Wheat Closing Comments

May London wheat ended GBP0.85 higher at GBP97.25/tonne, with May Paris wheat closing EUR0.75 lower at EUR127.00/tonne.

The USDA dropped US 2009/10 wheat ending stocks to 950 million bushels, although that was less than the one billion bushels that the trade had been expecting it's still a recent high.

This was a result of increased US exports and higher feed and residual usage.

World wheat ending stocks were also reduced slightly, falling by 1 MMT to 195.8 MMT, again though still a recent high. The reduction in US stocks was largely responsible.

UK ex farm levels have improved somewhat, with mid-GBP90's now reportedly available for remaining old crop supplies for summer collection.

That might be close to as good as it gets for those left with grain to sell. Harvesting will start in some parts of Europe in a little over two months.

The pound, and even the euro, both gained on a weak dollar during the course of the week, with sterling posting advances of over 3% to close at 1.5375 against the greenback.