EU Wheat Close

Posted by Nogger - a legend in his own mind at 19:06 | Categorized as

05/07/11 -- EU grains closed firmer with July London wheat up GBP2.00/tonne to GBP175.00/tonne, and new crop Nov GBP3.00/tonne higher at GBP165.50/tonne. Nov Paris wheat closed EUR4.50/tonne higher at EUR197.50/tonne whilst May12 rose EUR4.50/tonne to EUR203.25/tonne.

Extreme volatility continues with July London wheat up GBP20.00/tonne since last Monday, when it was down GBP17.25/tonne from the previous Monday!

Recent price declines have taken the wind out of the bull's sails following a rally that lasted eight months to the February highs for wheat. Despite an improved performance in the past week front month Paris wheat is still EUR81.00/tonne lower than then, with London wheat down GBP42.50/tonne.

The UK barley harvest is moving forward slowly. Reports are also coming in of some early rapeseed being cut in Kent and Essex.

Recent rains have slowed early harvesting in Ukraine and also in the southern Krasnodar/Stavrapol areas of Russia.

Some reports suggest that China has seized upon the recent lull in prices to book some US corn late last week and over the weekend. Whilst the tonnages aren't enormous, the fact that China's name is attached to them rather than say Mexico or Japan always gets the market that bit more excited.

Old crop corn was sharply higher as the European session closed on the conviction that stocks are tight, regardless of what the USDA has to say.