EU Wheat Closing Comments

Posted by Nogger - a legend in his own mind at 19:04 | Categorized as

29/12/10 -- EU wheat closed almost universally higher with Jan11 London wheat up GBP1.85 at GBP199.35/tonne and new crop Nov11 GBP3.75 higher at GBP170.00/tonne. Paris wheat closed with Jan11 unchanged at EUR252.50/tonne and Nov11 climbing EUR0.50 to EUR224.25/tonne.

London wheat gained the most as the Paris market was able to post significant gains of it's own yesterday when the London market was closed.

It was a highest ever contract lifetime close for every wheat contract both sides of the Channel for both old and new crop months, with the sole exception of unchanged Jan11 Paris wheat which still managed to at least match yesterday's all time high.

Jan11 London wheat had earlier posted an intraday high of GBP200/tonne for the first time in history for any front month.

The strong pace of UK and French wheat exports continues to underpin the entire market with fully six months left remaining in the 2010/11 marketing year.

Although Egypt passed on French origin wheat in yesterday's tender it was still priced competitively. The fact that they are still back buying on a weekly basis even at these levels surely has to be seen as supportive for global wheat in general.