EU Wheat Closing Comments

Nov London wheat ended GBP3.60 higher at GBP122; Nov Paris wheat was up EUR4.75 at EUR166.50; Nov Paris corn up EUR3.25 at EUR164.25; Nov Paris rapeseed up EUR5 at EUR359.25; Nov Paris malting barley was EUR0.75 higher at EUR180.25.

Both London and Paris wheat set 12 month highs today. Corn, rapeseed and malting barley all set life of contract highs.

Germany, Hungary and Ukraine all cut their grain production estimates too today.

The German farm cooperatives association (DRV), said that this season's wheat harvest will come in at 23.8 MMT, 5.5% lower than last year's production.

A severe drought in Russia meanwhile is cutting production forecasts there by the day. The President of the National Union of Grain Producers said that grain production will be 20-25% down on last year.

Strategie Grains have cut their UK wheat yield projections for 2010 from 7.96 MT/ha to 7.72 MT/ha, predicting production of just under 15.5 MMT.

The UK barley crop is estimated at 5.3 MMT, representing a reduction in output of 21.7% this year.