EU Wheat Closing Comments

Nov London wheat closed GBP1.50/tonne higher at GBP156/tonne, Nov Paris wheat ended up EUR2 at EUR229.50/tonne, & Nov Paris corn was up EUR0.50 at EUR195.50/tonne.

ADAS say that the UK wheat harvest is 65% complete, and yields are down 3-4% on the five year average at 7.6-7.7 MT/ha. That is somewhat better than was feared during the June heatwave.

Last week's rains haven't harmed quality too much they say, although other independent reports would suggest the contrary and that hagbergs on wheat cut this week have been disappointingly low.

Some rains have also arrived in parts of Russia, aiding winter planting prospects in some areas. The outlook has also improved considerably in western Ukraine.

Many newswires are stressing the heightened importance of the coming season's wheat crops in the southern hemisphere this year.

Rains in Western Australia may have aided parched crops there, and in the east of the country bumper/potentially record production is on the cards if the weather plays ball between now and harvest time in October/November.

Dryness in Argentina remains a concern, although the Rosario Grain Exchange peg the 2010/11 wheat crop there at 9-10.5 MMT which is lower than many other estimates, it is still well up on last season's 7.5 MMT crop.