Spot The Difference

Posted by Nogger - a legend in his own mind at 10:59 | Categorized as

06/05/11 -- The correlation between London wheat and Paris wheat price movements seems to altering as the two charts show (click to enlarge). I'm certainly starting to lose any faith I had in London wheat. Last night's close clearly didn't represent the reality of the situation. The volume here is so low that the market seems to have become too easy to manipulate.

Clearly I'm not the only one coming to these conclusions. One UK merchant I spoke to the other day said that they'd traded around 700 lots of wheat that day and only a handful of those were done in London, the vast majority was hedged in Paris.