EU Grains Close

04/04/11 -- EU grains closed with May London wheat up GBP4.25/tonne to GBP203.75/tonne and with new crop Nov climbing GBP3.70 to GBP171.20/tonne. May Paris wheat rose EUR6.25/tonne to EUR246.00/tonne and Nov was up EUR4.50/tonne to EUR217.25/tonne.

London wheat is now around GBP10/tonne off contract high closes set mid-February, with Paris wheat more like EUR30/tonne away.

Showers were reported in all but south central Europe over the weekend with more expected today before rains push eastward later in the week. That will have helped winter crops, but not made up for the deficit encountered during the past few months.

Things have been particularly bad in northern Germany where only 10-30% of normal rainfall fell in March.

US winter wheat is under severe stress in the southern Plains. Dodge City, Kansas, hit 94 F yesterday - setting a record for the date. Gusty winds and low humidity are also giving wheat growers in Kansas, Oklahoma and Texas a serious headache, report Martell Crop Projections.

Further north in spring wheat areas "persistent cold and snow has set back the planting dates, jeopardizing chances for a bumper harvest. North Dakota growers do not expect to start fieldwork till April 25. Planting would follow perhaps 3 weeks later," they add.

US corn reached a near three year high today on tight stocks and bumper demand, that should make inroads into America's ample wheat stockpiles this spring/summer with the Chicago corn/wheat spread getting close to parity.