EU Grains End Crazy Week Higher

18/03/11 -- EU grains finished possibly one of their craziest weeks in history higher, with Mar London wheat closing up GBP5.30/tonne at GBP194.35/tonne and new crop Nov up GBP5.10 to GBP163.30/tonne. May Paris wheat rose EUR8.00/tonne to EUR231.75/tonne whilst Nov was up EUR4.75/tonne to EUR207.50/tonne.

Mar London wheat was up GBP12.50 on the week as a whole, and finished GBP27 up on the intra-week low set Tuesday. Nov was up GBP9.80 on the week and GBP15.30 higher than Tuesday's intra-week low.

Russia's Deputy Prime Minister Viktor Zubkov reduced his estimate for the 2011 grain crop to 84-85 MMT from 85-87 MMT previously. SovEcon estimate the crop at 75-85 MMT versus 60.9 MMT last season.

The German wheat crop is seen at 24.6 MMT compared with 24.0 MMT in 2010.

"Europe got moderate rainfall yesterday in Germany, western Poland, the Czech Republic and Slovakia, which will be welcome after 30-40 days of dryness," say Martell Crop Projections.

US winter wheat crop conditions remain pretty dire. "The USDA crop progress report of March 12 revealed severe, worsening drought on the High Plains. Western Kansas topsoil moisture was 90-95% short-very short. Kansas wheat ratings fell to 40% poor-very poor, 34% fair, and 26% good-excellent. Texas wheat was even worse at 56% poor-very poor, 26% fair and 18% good-excellent," they add.