EU Wheat Closing Comments

November London wheat closed GBP2.20 lower at GBP162.80/tonne, and November Paris wheat closed EUR2.00 lower at EUR229.75/tonne.

Long-holders booked profits ahead of Friday's UDSA crop reports. Although US wheat ending stocks are certain to be reduced, they are far from being depleted down to the levels of 2007/08.

Some are voicing concern over the health of wheat crops in the southern hemisphere, as world focus switches there. Although Western Australia is too dry, elsewhere on that massive continent rainfall has been abundant and growers in Southern Australia and eastern states like NSW and Victoria are very optimistic of very good output this year.

In Argentina there have also been some production concerns, however Martell Crop Projections report that the country has "received beneficial, heavy rainfall in the past week that has improved growing conditions and replenished field moisture ready for corn planting."

"The rainfall varied from 0.5 inch in La Pampa to more than 2 inches in central Buenos Aires, Cordoba and Santa Fe. Showers are not finished yet. The forecast calls for 1-2 inch rains in the drier areas of the western grain belt. Santa Fe may get more than 2 inches of rain," they say.

Planting conditions have also improved in Western Ukraine and the Central Volga District of Russia in the past 7-10 days, although Southern Volga areas are still very dry, they add.