EU Wheat Gains Despite Rain, Supported By US Market

19/04/12 -- EU grains finished higher with May 12 London wheat up GBP0.50/tonne to GBP178.50/tonne but and Nov 12 up GBP2.00/tonne to GBP155.00/tonne lower. May 12 Paris wheat was EUR2.00/tonne higher at EUR209.25/tonne, new crop was EUR1.50 to 1.75/tonne firmer.

Old crop London wheat retains the look of a thin market in which some of the remaining shorts are getting squeezed.

Despite the pound rising to its best levels against the euro in nineteen months, and five month highs versus the dollar, May 12 London wheat managed to post the best closing level for a front month since June 2011.

Widespread rain fell again today across many parts of the UK, France and Western Germany. Western Europe has received generous rainfall in April that eases drought and stabilizes wheat and rapeseed conditions, although crop damage may not be totally irreversible, according to Martell Crop Projections.

Brussels issued 279 TMT of soft wheat export licences this past week, bringing the year to date total to 11.09 MMT, almost a third down on this time last year.

US corn & wheat posted strong gains today, adding spillover support to the EU market, despite the fact that they still remain at a significant discount to European origin grains.