The Early Vibe: London Wheat Down GBP7.25 In Early Trade

Posted by Nogger - a legend in his own mind at 09:19 | Categorized as

31/05/11 -- The overnights are mixed with wheat sharply lower, although well off session lows so far, corn is down in sympathy and beans are a little higher.

Front month July Globex wheat is down 20c, but has been as much as 36c lower following the weekend news that Russia is to lift it's grain export ban from July 1st.

Paris wheat closed sharply lower last night in the wake of the announcement. Some unconfirmed reports this morning say that "Russia has already begun selling". Other more reliable sources state that Ukraine meanwhile have sold new crop wheat to Tunisia, Ethiopia, Egypt and Lebanon in the past few days since it lifted it's own export restrictions.

Western Australia picked up some much needed moisture (up to 50mm in places) over the weekend to aid winter wheat plantings there from a second wave of rainfall across the state. A decent crop here this season could herald record production Down Under.

Northern and western areas of the UK had a soggy Bank Holiday weekend, although rainfall totals were more modest in the SE. France and Germany got some rain, with chances for more looking ahead. Snowstorm are giving chances of rain in Paris every day for a week starting on Saturday.

Russian spring grain plantings were approaching 80% complete as of May 26th, with Kazakhstan saying it will be done by the weekend and with Ukraine spring sowings already finished.

Nov London wheat opened GBP5.00/tonne lower and currently trades GBP7.25/tonne (down 3.7%) easier in early trade playing catch-up with Paris from yesterday which closed 4.9% lower.