EU Grains Suffer Another Bad Day At The Office

13/06/11 -- EU grains closed lower again with July London wheat down GBP4.00 to GBP188.00/tonne and with new crop Nov falling GBP4.10/tonne to GBP180.35/tonne. Nov Paris wheat closed EUR7.25/tonne lower at EUR224.00/tonne whilst May12 declined EUR6.00/tonne to EUR228.25/tonne.

Large parts of the continent were shut today for Whit Monday, so it was a relatively quiet session. Those that were in seemed to believe that recent rains across large parts of the UK and France/Germany may have done some good judging by the market's reaction.

This was the lowest close for a front month on London wheat since March 16th, just a few days after the Japanese tsunami-induced slump.

There seems to be a growing unease developing over the state of health, or otherwise, of the world's financial markets. Lauded New York University professor Nouriel Roubini (who famously forecast the huge 2008 financial crash) has warned of a "perfect storm" developing.

Citing the failure of the US to properly address it's budget deficit, European debt concerns and a growing rift over how to tackle the problem, Japanese recession in the aftermath of the cost of the March 11 earthquake and Chinese overcapacity Roubini is warning of potentially dark days ahead.

You probably don't need me to remind you what happened to the grain markets the last time he spoke out against common belief.