EU Wheat Close

18/01/11 -- Jan London wheat closed GBP1.00 higher at GBP190.60/tonne, with new crop Nov GBP2.60 higher at GBP169.10/tonne. Mar Paris wheat rose EUR4.00 to EUR255.75/tonne, whilst new crop Nov climbed EUR3.75 to EUR228.25/tonne.

The quality wheat traded in Paris continues to rebuild it's premium over that traded in London.

Ukraine has hinted that it may at least review it's existing export quota system - currently in place until the end of March - sometime next month. That doesn't help too much if you want wheat tomorrow mind.

If you do you can cross Argentina off your list as they are on strike. In addition Australia has logistical and quality problems of it's own.

That leaves either France or the US if it's quality bread-making wheat you're after, hardly what you would call a buyers market.

The Algerian government seem to have their buying boots on right now, keen to avoid the same fate as the recently toppled Tunisian ruler Zine al-Abidine Ben Ali. They are not alone amongst North African and Middle east nations fighting civil unrest over soaring food prices.

China's wheat production potential this year is still very uncertain following drought in the north. Meanwhile winter wheat in the top producing US state is also under threat from drought.