EU Wheat Ends Mixed

Posted by Nogger - a legend in his own mind at 20:12 | Categorized as

21/12/11 -- EU grains ended mixed with Jan 12 London wheat down GBP1.30/tonne to GBP144.50/tonne and Jan 12 Paris wheat up EUR2.50/tonne to EUR193.75/tonne.

The pound climbed to its highest since January against a lethargic euro, closing above 1.20 on the day.

Fresh news was fairly limited, new crop London wheat gained on old crop with the differential between July and Nov narrowing to GBP6.00/tonne at the close.

More than one compounder I've spoken to in recent weeks questions why the 2011 harvest should command any sort of a premium over next year's harvest at all.

The market remains concerned over "drought" in South America, although other than that there are few bullish stories around.

Nov/Dec rains in the major HRW wheat areas of Kansas, Oklahoma and Texas have been 200-300% above normal, according to Martell Crop Projections. That should be highly beneficial for American winter wheat.