EU Wheat Resumes Upward Tack

November London wheat closed up GBP3.45 at GBP151.50/tonne, with November Paris wheat ending EUR4.75 higher at EUR209.00/tonne.

Although the market seems quite clearly to be in "blinkered mental overdrive" even the most resolute of bears appear shell shocked by the size and suddenness of this latest rally.

Egypt and Jordan apparently bought Russian wheat miles under the cheapest EU offers, drought or no drought. There are two ways of looking at that. The way that the trade currently seems to prefer is that Russia will soon be sold out and that dearer EU and US wheat will soon get a look in.

Open interest in Paris wheat continues to increase, now running at more than 125,000 lots for November, say no more.

German wheat yields seem to be running 10-15% below last year, according to the German Farmers' Union DBV.

Elsewhere the Food and Agriculture Organization cut its 2010 global wheat production forecast to 651 MMT.