EU Wheat Ends Higher Again As Records Tumble
22/12/10 -- Jan London wheat closed GBP2.25 higher at GBP196.25/tonne and new crop Nov was up GBP1.2 to GBP165.00/tonne. Jan Paris wheat closed up EUR2.50 at EUR247.25/tonne, whilst new crop Nov climbed EUR1.00 to EUR219.25/tonne.It was a new highest ever front month close for London wheat, whilst July too set an all time high for any contract of GBP202.00/tonne. Paris wheat also closed at contract highs, whilst Paris rapeseed is closing in on the magical EUR500.00/tonne mark, with Feb finishing at a contract lifetime high of EUR491.50/tonne.
Iraq bought 250,000 MT of wheat from the US and Australia in its latest tender, despite soaring prices, meanwhile the world's largest importer Egypt continues to buy on a weekly basis.
China may need to import more wheat in 2011 than normal after the North China Plain received no important rain for 90 days, due to a strengthening La Nina. In addition the government's recent decision to cap flour prices by selling wheat to local millers at heavily discounted prices will leave a hole in state-owned stocks.
Brussels reported that they had issued soft wheat export licences for 316,000 MT this week. That brings the year to date total to 10.9 MMT, well ahead of year ago levels.
The German Statistical Office report winter wheat plantings there virtually identical to last year at 3.26 million hectares. Winter barley sowings are down 6% to 1.23 million ha and winter rapeseed plantings have declined by just 1% to 1.45 million ha, they say. The latter figure is better than earlier reports had suggested.
