EU Wheat Close

13/07/11 -- Nov London wheat was sharply higher, up GBP5.55/tonne to GBP167.15/tonne with Nov Paris wheat up EUR9.75/tonne to EUR201.00/tonne.

A heat wave in the US sent EU grain prices soaring. Late planted corn is expected to suffer as a heat dome forms over the central Plains and Mississippi Delta.

Bulls were quick to point out that corn yields declined sharply last year from their June estimate of 163.5 bu/acre before a hot and dry July and August cut that back to a final yield of 152.8 bu/acre.

Agritel are forecasting a French soft wheat crop of 31.7 MMT, an 11.5% reduction on last year.

Recent concerns over commodity demand from China was eased after they unveiled second-quarter economic growth of 9.5%.

The Philippines bought 75,000 MT of Black Sea feed wheat at levels far cheaper than EU, US or Australian wheat. That underlines recent news that Egypt bought Russian milling wheat at USD30-40/tonne cheaper than EU origin.