EU Grains Close

20/06/11 -- EU grains finished with July London wheat GBP4.25 lower at GBP172.25/tonne and with new crop Nov falling GBP2.10/tonne to GBP172.40/tonne. Nov Paris wheat closed EUR1.25/tonne lower at EUR211.75/tonne whilst May12 also declined EUR2.00/tonne to EUR216.25/tonne.

A front month London wheat contract has only closed lower than this once since late November. It is also interesting to note old crop wheat closing at a slight discount to new crop whereas two months ago July was a GBP37.00/tonne premium to Nov.

Paris wheat fared somewhat better than London as the euro remains under pressure due to no conclusive action from France and Germany over the weekend with regards to the Greek situation.

Decent weekend rains over much of Europe should also have helped improve crop prospects. There's more in the forecast too over the next couple of days.

Saudi Arabia bought 360,000 MT of US/EU wheat over the weekend at an unspecified price and with no clear indication on how the order was split.

Heavy rainfall covered a large part of Ukraine over the weekend, and crop conditions are now looking "very favourable" according to Agritel.

Russia's Novorossiisk port says that they are ready to ship 500-600 TMT of wheat in July as soon as the export ban is lifted.