New Crop EU Wheat Ends At Record Highs

14/02/11 -- EU wheat closed higher again with Mar London wheat climbing GBP2.25 to GBP210.00/tonne and new crop Nov GBP1.75 higher at GBP182.00/tonne. Mar Paris wheat rose EUR1.75 to EUR274.75/tonne, with Nov up EUR3.00 to EUR246.50/tonne.

It was a record high close for new crop London and Paris Nov wheat.

Tunisia bought 100,000 MT of optional origin wheat and Iraq bought 200,000 MT of US and 150,000 MT of Australian wheat, bringing their total purchases to 850,000 MT so far this year.

Unusually low temperatures in Mexico appear to have caused some damage to the corn crop there, although replanting is an option. There are also question marks over Chinese and US wheat potential this year.

EU wheat sales seem to be slowing at these levels, with US, Canadian and Australian wheat winning the lion's share of recent global tenders.

Brussels are set to vote on whether to temporarily waiver the EUR12/tonne import duty on feed wheat and EUR16/tonne tariff on barley later this month. With Australia having an abundance of feed wheat about it this year that could stem the way for large scale exports into the EU.

That could cap any further upside for EU feed wheat already struggling to feature in compounder's rations.