EU Grains Close - Tuesday

05/06/12 -- Paris grains finished mixed with London closed for a second day for the Queen's Jubilee celebrations. Nov 12 Paris wheat was down EUR1.00/tonne to EUR205.50/tonne, it's lowest close in thirteen sessions.

Decent weekend rains across the UK, France and western half of Germany have extended into the beginning of the week, boosting crop prospects further.

Some rain also fell in parched Western Australia, with more in the forecast for the week ahead. Recent rains may also have drawn a line under deteriorating crop conditions in Russia and Ukraine it is hoped.

Tomorrow all eyes will be on Europe, once again, with some pundits forecasting a drop in interest rates from the ECB. Others are calling for an increase in QE to attempt to boost growth.

At home survey by Lloyds Banking Group shows business confidence slumping from a positive reading of 26 points to a negative one of 21 points.

London wheat will play catch up tomorrow after an extended holiday. Paris wheat has been down on both of the last two days, and Chicago wheat is more than 30c lower based on its close on Friday night through to Tuesday night so a downwards opening seems the most likely.