EU Wheat Closing Comments

May London wheat ended down GBP1.40 at GBP102.50/tonne, with May Paris wheat EUR1.50 lower at EUR130.00/tonne.

US wheat futures crashed late in the session last night, and added to those losses in overnight trade. That took the shine off recent gains on the European market.

Greece had it's credit rating downgraded to "junk" by Standard & Poor, whilst Portugal's rating was also lowered. That hit the euro, which helped Paris wheat in particular from falling as low as it might have done under the circumstances.

There are few serious threats to EU wheat production so far in 2010, and there seem to be few also elsewhere in the northern hemisphere. Rallies should therefore be sold into, in my humble opinion.

May Paris rapeseed, which had been enjoying something pf a renaissance period of late, closed a stunning EUR18.50 lower following the news that a major German processing facility had been put out of action for at least two or three months.

It will probably be at least 6-12 months judging on latest reports.

That highlights how quickly things can change in this market, if you see an opportunity to sell at a profit then take it.