EU Grains Closing Comments
London wheat ended GBP0.80 higher at GBP103.50/tonne Thursday, with Paris wheat up EUR3.75 at EUR133.00 as the pound and euro both nosedived.
All markets were extremely nervous in the continued fallout from the unfolding Greek tragedy, and uncertainty over the implications for the rest of Europe. Stock took a hit, with the Dow Jones Industrial Average falling almost 1,000 points at one stage, before rebounding nearer the close to end with losses of just under 350 points.
Even so, that's the worst one-day drop since February 2009. Lots of stories are around at the moment to explain the huge movement. Some suggest a trade accidentally authorised for a sell order for USD16 billion, instead of USD16 million worth of e-minis.
Computer generated stop loss selling is also said to have maybe been partially to blame. Stock in one US firm, Accenture, made history by plunging from an opening price of USD41.78/share to just one cent (!!) before closing at USD41.09/share.
UK wheat rose as the pound shed around 2.5% on the day against the dollar, the euro was also sharply lower.
That won't do export hopes any harm.
Trade talk suggests that the UK's 'burdensome' wheat stocks are a lot more difficult to get price from farmers' grasps than many had thought. One certain merchant is apparently kicking ass on farm and outbidding just about everyone else for what wheat is left available for sale. Who might that be? I couldn't possibly say as I never use the F word.
All markets were extremely nervous in the continued fallout from the unfolding Greek tragedy, and uncertainty over the implications for the rest of Europe. Stock took a hit, with the Dow Jones Industrial Average falling almost 1,000 points at one stage, before rebounding nearer the close to end with losses of just under 350 points.
Even so, that's the worst one-day drop since February 2009. Lots of stories are around at the moment to explain the huge movement. Some suggest a trade accidentally authorised for a sell order for USD16 billion, instead of USD16 million worth of e-minis.
Computer generated stop loss selling is also said to have maybe been partially to blame. Stock in one US firm, Accenture, made history by plunging from an opening price of USD41.78/share to just one cent (!!) before closing at USD41.09/share.
UK wheat rose as the pound shed around 2.5% on the day against the dollar, the euro was also sharply lower.
That won't do export hopes any harm.
Trade talk suggests that the UK's 'burdensome' wheat stocks are a lot more difficult to get price from farmers' grasps than many had thought. One certain merchant is apparently kicking ass on farm and outbidding just about everyone else for what wheat is left available for sale. Who might that be? I couldn't possibly say as I never use the F word.