EU Wheat Close

29/03/11 -- EU grains closed with May London wheat down GBP0.15/tonne to GBP200.35/tonne and with new crop Nov falling GBP1.25 to GBP161.75/tonne. May Paris wheat was EUR1.75/tonne lower to EUR240.50/tonne and Nov declined EUR4.25/tonne to EUR205.00/tonne.

It seems like today was consolidation ahead of Thursday's USDA reports.

The May/Nov Paris wheat spread ended the day at EUR35.50/tonne, more than double the differential of just a fortnight ago, reflecting old crop tightness and robust demand.

The Farmers' Weekly are reporting that March looks set to be one of the driest on record, with England and Wales getting just a fifth of their normal rainfall.

Dryness concerns in northern Europe may be alleviated in the next couple of days if the forecast rains arrive.

"European warmth has stimulated growth in rapeseed and winter wheat, although drought is still a worry in northern crop areas where it has been very dry for the past 60-70 days. The current wet forecast, if verified, would be ideal," say Martell Crop Projections.

Winter wheat on the US Great Plains is suffering from drought, although some moisture relief is on the way for Colorado and Kansas, Oklahoma and Texas remain under severe stress. In the Texas High Plains they've only had 0.31 in of rainfall so far this year, the HRW wheat crop here is rated 0% excellent, 11% good, 27% fair, 30% poor and 32% very poor.