London Wheat: Is GBP200/tonne Really The New Normal?

Posted by Nogger - a legend in his own mind at 11:23 | Categorized as

18/05/11 -- London wheat has really got the bit between it's teeth this morning. With May12 currently GBP5.50/tonne higher at GBP191.00/tonne new crop is now dearer than old crop July. That's quite a turnaround considering that at the start of the month this July was a GBP26.00/tonne premium!

Malting barley seems beyond redemption, with Nov up EUR43.00/tonne since the start of May, with rapeseed not too far behind either. Yet much of the OSR round here still looks really rather good.

Even Nov12 London wheat is three quid up this morning and that crop is five months off even being planted yet. Will Vivergo be open by then? Will Ensus still be shut by then? Will they all have opened and shut down again by then?

Will there even be a European biofuel industry left?

Is GBP200/tonne, or the dollar equivalent, really the new normal? Or is it this: