EU Wheat Close
28/10/10 -- Nov London wheat finished the day with gains of GBP6.25 to GBP170.75/tonne, with Nov Paris wheat up EUR5 at EUR224.00/tonne.Wheat was on the up from the off, but gathered steady momentum throughout the day.
News that Germany had voted to up the maximum inclusion rate of bioethanol in fuel from 5% to 10% set the tone. Later in the day came unconfirmed rumours that Ukraine was to curb sunflower seed and rapeseed exports and/or those of their by-products.
About to expire Nov Paris rapeseed had an incredible day, trading around EUR7.50 higher for much of the day before closing EUR12.50 lower. That contract goes off the board tomorrow with Feb becoming the new front month. That contract finished EUR1.25 higher at EUR404.75/tonne.
Chicago wheat opened sharply higher, propelling EU grains to their best gains of the day in afternoon trade.
It now seems fairly clear that Russia will be down to "bare boards" come next harvest, and they are reportedly using all their powers of persuasion to strike deals with their neighbours to avoid them having to emerge as outright importers of grains.
Well-placed concerns over the future of next season's harvest already exist, at the very least that looks set to minimise their export abilities for 2011/12 too.
