EU Wheat Closing Comments

Blimey what a day (again)! Nov London wheat closed GBP6.50/tonne higher, having been an unprecedented GBP17.50/tonne higher at one stage. Nov Paris wheat ended EUR14.50 higher at the close.

Yet again the market was on fire, Russia apparently finally imposed an export ban on all grains from Aug 15th through to the end of 2010.

The market is "going mental" as growers fall over themselves to take advantage of the current market prices that they could never have even dreamed for just a couple of months ago.

That in itself brings quite a few problems for merchants, with "crippling margin calls" making business difficult for many to say the least.

It continues to be a very difficult market, despite soaring world prices few "normal" players seem to be on the right side of this latest rally.