EU Wheat Closing Comments

November London wheat closed GBP1.15 higher at GBP118.60/tonne and November Paris wheat up EUR3.50 at EUR160.75/tonne.

Both London and Paris futures recovered well from a lower opening earlier in the day. It's been an impressive rally that we've seen this past week or so, probably the most impressive since the unforgettable days of early 2008. But we should all remember the tears that that one ended in.

Egypt bought only one cargo of Russian wheat in today's tender, paying USD18.50 more for it than in their previous tender little more than a week ago. This wheat was also more than USD18/tonne cheaper than the lowest French wheat tender.

That kind of proves one thing to me. Black Sea grain will continue to be offered at levels that knock EU wheat "into a cocked hat" until they run out of stuff to sell. That probably isn't going to happen now until early 2011.

There isn't much fresh news on yields out of France or Germany this past few days.

A very small number of fields have reportedly been cut in the UK, and yields from those are surprisingly good.