EU Wheat Closing Comments

After a pretty see-saw day November London wheat closed GBP0.25 higher at GBP118.85/tonne, and November Paris wheat up EUR1.75 at EUR162.50/tonne.

Futures were strongly higher early in the session, but gave up most of those gains by the close ahead of tomorrow's crucial USDA report.

It is certainly interesting though how EU futures seem to have extricated themselves from the confines of Chicago of late, indeed Chicago seems to be following us rather than the other way round for the first time in ages.

EU prices have moved up a lot in a very short period. The thing that surprises me the most is that most, if not all, of the reasons that the market has appreciated so swiftly were known many weeks ago.

Some reports suggest that speculative money is behind much of the recent gains, just as it was responsible for feed wheat rallying to GBP200/tonne back in 2008. Is this only the start of the beginning?

Personally I doubt it, but what do I know?