EU Wheat Close

Nov London wheat closed GBP0.80/tonne higher at GBP155.05/tonne, with Nov Paris wheat down EUR1.50/tonne to EUR204.00/tonne.

Another strong showing from the euro was enough to weigh on Paris wheat after America came in looking a bit "so-so" in afternoon trade. The pound slipped perilously close to falling below 1.14 against the single currency for the first time since May 21st.

The euro also rose to it's best levels against the dollar since late January, whilst the pound was under pressure on ideas that more QE is on the cards. That was sufficient to ensure that London and Paris wheat move in opposite directions for now.

It is worth noting that open interest in Paris wheat continues to decline, falling to 103,000 last night, although that is still more than 5 MMT.

Private firms continue to estimate this season's US corn crop at well below last month's USDA estimate. Chicago-based analysts The Linn Group yesterday pegged this year's corn yield at 158.2 bushels/acre. Lanworth Inc today concurred, placing corn yields at 158.3 bushels/acre, with a crop of 12.953 billion bushels, compared with 13.16 billion projected by the USDA last month.

The USDA themselves are out with a revised estimate on Friday, given last week's shock for corn the trade remains cautious ahead of this report.

Russian winter grain plantings are tailing off as temperatures drop, whilst reports of acute drought in Western Australia paint a bleak picture of wheat prospects there.