EU Wheat Close

Nov London wheat ended GBP3.50 higher at GBP165.75/tonne, with Nov Paris wheat up EUR5.00 at EUR233.75/tonne.

Paris wheat staged a very strange day, closing below EUR230 support last night, yet opening above EUR236 resistance this morning, before subsequently falling back to trade with the same old narrow trading range of EUR230-236.

Brussels issued export licences for 514,000 MT of soft wheat this week, little more than half of what was issued last week, although year-to-date issues are ahead of last season.

A strongly higher overnight CBOT market was the catalyst for firmer prices today, largely on the back of continued fund buying relating to frost forecasts for China and Canada over the weekend.

One unconfirmed report suggests that a major household name investment bank sunk a billion dollars into the overnight grains this morning. Certainly fund interest extended their already record longs in corn.

Parts of eastern Ukraine and Russia remain too dry for planting, with only a third of the intended acreage sow in the latter so far.

Similar problems don't exist in America or most of Europe, winter wheat plantings here will surely be significantly higher. Fund money seems to be ignoring that for the time being and concentrating on the now, but the blinkers will have to come off eventually.