EU Wheat Close

15/12/10 -- Jan London wheat closed GBP0.75 higher at GBP190.00/tonne and new crop Nov was up GBP1.20 at GBP159.20/tonne. Jan Paris wheat closed up EUR2.00 at EUR238.00/tonne, whilst new crop Nov climbed EUR1.75 to EUR213.75/tonne.

Egypt bought 230,000 MT of wheat in it's tender today, with just over half of that being French grain at USD323.85/tonne. That adds to the 180,000 MT of French wheat they bought last week. Clearly EU wheat hasn't priced itself entirely out of the market just yet.

The rest of the Egyptian tender went the way of US origin wheat. Elsewhere Jordan also bought 150,000 MT of US wheat today.

With global prices riding very high, potential sellers the world over are rooting down the back of the settee to see if there's any wheat left down there.

Turkey have apparently just found 610,000 MT of milling wheat hiding down the back of their settee, no wonder they were looking uncomfortable. Their state-owned grain board intend to sell that off in the near future, they say.

The cash-hungry Argentine government meanwhile have already authorised 5.5 MMT of their currently being harvested wheat to be exported in 2010/11, and anticipate allowing a further 1.7 MMT to leave it's shores on top of that before the season ends.

Australia's prospects seem to have improved as the weather there finally dries up in the east. The jury is still out on quality, but they seem pretty confident that yields will be bumper. After all, rain does make grain they say. NSW will have the largest grain crop in the history of the state, or indeed any other Australian state, according to ABARE.