EU Wheat Close

21/09/11 -- EU grains finished mostly higher with Nov London wheat up GBP1.25/tonne to GBP160.75/tonne and Nov Paris wheat climbing EUR0.75/tonne to EUR196.75/tonne.

It was another monumentally uneventful day really, news that Greece may accelerate the pace of it's austerity cuts helped the euro. The minutes of this month's BoE meeting hinted that more QE could be on the cards.

Once again the market is treading water waiting for some firm conviction on direction. Farmers are reluctant sellers having seen prices fall substantially since their May highs. Consumers however are equally reticent to commit.

Fundamental news for the grain business was scant to say the least. Pakistan has joined India in saying that ample wheat stocks will allow it to begin exports soon.

Rumours, but they are only that, of China recently re-entering the corn import market remain unconfirmed.

The Russian grain harvest is now over 81 MMT with 21% of the planted area still left to be cut. Of that 50.6 MMT is wheat off 79% of the planted area. The corn harvest is only 7% done so far. All this suggests that the existing USDA and Ministry forecasts for the current harvest are significantly underestimated. Ditto Kazakhstan.