EU Wheat: Yo-Yo Oh No!
08/12/10 -- Another volatile session that saw wheat prices fluctuate both sides of unchanged finally ended with Jan London wheat up GBP0.80 to GBP186.90/tonne and new crop Nov wheat up GBP2.75 to GBP157.25/tonne. Jan Paris wheat closed EUR6.00 higher at EUR238.25/tonne and Nov wheat was up EUR1.75 to EUR211.25/tonne.We seem to have gone from a period of steady price increases to more of a yo-yo sideways pattern as we near the year end.
Quality wheat remains the peg to hang your hat on, with premium high protein Kansas wheat futures extending the differential between that and Chicago to the widest since 2008.
The euro was weak, with the pound advancing above 1.19, to close to it's highest since last September. That helped Paris wheat gain relative to London.
It was interesting to see London wheat narrow the gap again between old crop and new crop.
Ukraine extended their export quota system until the end of March, although they did add a bit of extra tonnage to the volume they will allow to go out during that period. That will include 1 MMT of corn and 0.5 MMT of wheat.
There is talk now of rain damage in Australia being so bad that some acres will be abandoned and not even see a combine.
