EU Wheat Close

02/05/12 -- EU grains finished mixed with May 12 London wheat down GBP2.25/tonne to GBP174.25/tonne and Nov 12 down GBP1.40/tonne to GBP153.75/tonne. May 12 Paris wheat was EUR1.25/tonne higher at EUR217.75/tonne, new crop Nov 12 was down EUR2.00/tonne to EUR201.75/tonne.

Rapeseed was showing solid gains for most of the day amidst ideas that the EU-27 crop would struggle to be much higher than 18 MMT this year, further supported by Chicago soybeans surging to fresh highs in afternoon trade.

A late capitulation, as soybeans got dragged lower by sinking corn and wheat values across the pond, however saw rapeseed futures close well off session highs. Nov 12 Paris rapeseed closed EUR1.00/tonne higher at EUR475.75/tonne having been as high as EUR481.00/tonne at one stage.

April's abundant rainfall means that wheat potential in the UK, France and Germany has improved dramatically.

Things would appear to have improved significantly in Ukraine too, where agronomist Mike Lee reports "perfect growing conditions" and is upbeat about new crop production prospects.

In America, a Kansas crop tour found winter wheat crops there to be in great shape with yields on day one coming in at 53.6 bushels an acre, much better than the 40.7 bushels an acre average over the last three years and more than 50% up on the state's poor average of just 35 bushels and acre last year.

A Bloomberg survey pegs the final Kansas wheat yield at 45.8 bushels an acre this year, the best since 2003.

The crop there is also said to be around four weeks ahead of normal maturity, meaning that an early harvest is on the cards leaving less time for Mother Nature to throw it a curveball.

The euro was under pressure again on news that Euro-zone unemployment hit 10.9% in March - the highest since the euro was formed in 1999.