EU Wheat Close

Nov London wheat closed GBP0.10/tonne lower at GBP154.50/tonne, Nov Paris wheat ends EUR0.25 lower at EUR227.50/tonne, & Nov Paris corn down EUR1.50 at EUR195/tonne.

It was a topsy turvy sort of a day, with London wheat higher for most of the session and Paris wheat lower.

A weaker pound contributed towards London's strength as too did the large price differential between the two. Traders seem to be thinking that this week's improved weather outlook will ultimately mean that UK wheat makes a decent standard after all this year.

German wheat doesn't look like it will attain it's usual high standard however. One German miller bought 20,000 MT of US hard wheat today, highlighting the lack of quality milling wheats available. That's apparently their first such purchase in three years and their largest in ten.

Egypt bought 225,000 MT of US wheat in today's tender, proving that other origins haven't got things all their own way.

A warm, dry week to start the month will enable much of the UK harvest to be wrapped up by the weekend. A further week of rain may have harmed quality irreparably. As it is we seem to have got off quite lightly relative to Germany.

Their rain problems are expected to move eastwards by the weekend, which may bring further relief to the northern areas of Russia's wheat belt.