EU Wheat Closing Comments

November London wheat closed GBP6.90 higher at GBP149.40/tonne, with November Paris wheat up EUR12.50 at EUR207.75/tonne.

The first of the month brought with it another wave of fresh buying. Nobody seems to have told the funds that they should have been banking profits last week, and today's price action appears to confirm that the uptrend is still firmly in place.

London wheat closed off the days highs, November reached GBP153/tonne at one point, but considering the strength of the pound today that was still pretty impressive.

Open interest in November Paris wheat is now running at almost 123,000 lots, that is a huge amount.

Egypt bought Russian what again over the weekend, picking up 180,000 MT from Cargill and Bunge. These prices were well below that of French or US wheat.

When prices rise by these sorts of magnitudes in one day everybody sits up and takes notice. We can't really be in "uncharted territory" because we chartered it a few years ago. You can probably recall how badly and painfully that ended.

I sense that we are in for another similar "religious experience". The sixty million dollar question is how high will the funds build this particular house of cards before it all falls down again, in my opinion.