EU Wheat Closing Comments

November London wheat closed GBP1.50/tonne lower at GBP146.50/tonne, with November Paris wheat ending unchanged at EUR205.25/tonne.

Futures did at least manage to close well off the days lows after Chicago wheat opened higher on talk that Russian rains might not be as widespread as earlier anticipated.

London wheat was pressurised by a firmer pound after the release of the minutes of the BoE's meeting earlier this month revealed one dissenter in keeping interest rates on hold. Prominent MPC member Andrew Sentance was apparently in favour of raising rates to 0.75%.

November Paris wheat fell below EUR200/tonne at one stage, a close below that psychologically important support level would have looked very bearish. It remains to be seen how long it can continue to hold above that level.

It was a relatively quiet day in London with only 499 lots traded all day. Paris as usual saw a much higher volume, but open interest in November remains very high, leaving the market still vulnerable to further front-end selling pressure.

Ukraine's seemingly done deal on export quotas caught the market on the hop, as they announced today that they are deferring a final decision until next week.