Early Vibe

17/06/11 -- With Chicago wheat closing 35 1/4c down last night, and the overnights being lower again this morning then I guess that we're going to see London and Paris wheat extending their losses again today.

July London wheat is already down GBP15.35/tonne, or 8%, on the week so far, with Nov Paris wheat down a slightly more modest EUR15.25/tonne, or 7%.

It would seem that we may be adopting the seasonal price trend of a May peak slumping into a harvest low. Here's a chart of the seasonal price trend for London wheat 1990-2010:

Keen to cash in on high prices Pakistan have exported a record 2 MMT of wheat so far this year, and are likely to have shipped out another 1 MMT by the time the UK harvest gets going in August, traders say.

Funds sold an estimated 21,000 CBOT corn contracts yesterday, bringing their weekly dumping to around 60,000 say Agrimoney.com, that's equivalent of more than 7.6 million tonnes.