EU Wheat Ends Close To Lowest Levels In A Month

24/02/12 -- EU grains finished lower with front month Mar 12 London wheat falling GBP1.75/tonne to GBP164.25/tonne. Mar 12 Paris wheat down EUR2.25/tonne to EUR207.50/tonne.

Paris wheat ended within less than a euro of it's lowest close in a month, with London wheat not too far away - within GBP1.25/tonne of it's lowest close since Jan 23rd.

On the week as a whole Mar 12 London wheat was actually GBP0.25/tonne higher despite Mar 12 Paris wheat slumping EUR9.75/tonne. Euro strength in the second half of the week can maybe account for some of that discrepancy.

Crude oil offered some outside support surging to fresh nine month highs and the highest in euro and sterling terms ever. Tensions between Iran and the West cranked up another notch on news that the Arab nation had stepped up it's nuclear activities.

Elsewhere though the news was bearish for wheat and corn with the concluding day of the USDA's Outlook Forum cranking up production and 2012/13 ending stocks for both.

A decent slug of rain and snow is seen moving across the the north central and northern Midwest today through to Tuesday which should benefit this dry area ahead of spring planting, adding to the bearish tone for grains.

The picture for soybeans however is more bullish, with 2012/13 ending stocks seen falling to 205 million bushels, a reduction of 25% on this season.