The Week So Far

29/07/11 -- Here's a quick resumé of where we are on the week so far, including overnight/daytime action this morning:

Nov London wheat up GBP3.00; Nov Paris wheat up EUR5.50; Nov CBOT soybeans down 20 1/2c; Dec CBOT corn down 3 3/4c; Dec CBOT wheat up 43 1/4c.

An interesting point raised by this morning is front month September corn closing below new crop December for the first time in almost a year.

It's also noteworthy that Chicago wheat has outperformed everything else this week, clearly on the back of wheat conditions in the US. That market seems to be trying to ignore increased wheat production estimates elsewhere and the ultra-competitive offers emanating out of the Black Sea.

There may be some quality issues surrounding quality amongst French and German wheat when the harvest gets going again this weekend after a week of rain. There are also quality question marks over Ukraine's wheat crop.

That makes it particularly difficult to make out a case for why UK feed wheat prices should mirror the movements of better quality wheats traded in Paris and the US.

Once again I can only attribute this to lack of selling by growers here itching to get stuck into their wheat faced with whatever uncertainty remains over quality and yield. It may therefore be a few weeks yet before we see any "harvest pressure" on UK wheat prices.