EU Wheat Close

01/12/10 -- EU wheat futures closed with Jan11 London wheat up GBP4.05 at GBP183.25/tonne, and Nov11 London wheat up GBP4.15 to GBP154.05/tonne. Jan11 Paris wheat gained EUR5.00 to EUR229.00/tonne and Nov11 Paris wheat rose EUR6.50 to EUR206.50/tonne.

In London, the July future is now less than GBP10/tonne away from breaking through the psychologically important GBP200/tonne level.

London wheat posted another highest close for a front month since late March 2008 record. EU wheat gained on the continued weakness of the euro, London wheat continues to benefit from ideas that the 2010 crop has been oversold on the export front.

Egypt bought 220,000 MT of US wheat today, usurping French origin amongst others, but nobody seems to mind. The EU simply don't need to try and compete. Why hold a pre-Christmas sale when there's nothing left to sell in the store?

Australia is in trouble. Wheat in the west have been decimated by drought, whilst crops in the east are drowning under incessant rains. Quality is going down the pan rapidly.

Heavy snowfall across northern Europe will help protect crops from winterkill. However snow cover is relatively scant in Ukraine and Russia, raising further concern for late-planted wheat.