EU Wheat Closing Comments

May London wheat ends Tuesday GBP0.85 higher at GBP99.25/tonne, with May Paris wheat up EUR1.50 at EUR129.50/tonne.

It was another "Turnaround Tuesday" with US levels reversing their price action of the previous Monday.

London wheat may have gained more of it had not been for the pound gaining as UK inflation rose to 3.4%, from 3% in Feb, and analysts expectations of an increase of only 3.1%.

EU farmers continue to play their one remaining trump card, holding back on selling whatever old crop stocks they have left. If consumers need it then they may have to pay up, or use something else.

As far as new crop is concerned, there are one or two potential problem areas around. However these don't include the largest producing counties in the EU-27 such as France, Germany and the UK.

Eastern Europe, and maybe northern countries like Denmark are where some significant yield losses might occur.