EU Wheat Close

Posted by Nogger - a legend in his own mind at 19:15 | Categorized as

03/11/11 -- EU grains finished higher with Nov London wheat climbing GBP2.10/tonne to GBP151.00/tonne and Nov Paris wheat gaining EUR4.25/tonne to EUR193.75/tonne. This was the highest close on Nov Paris wheat since late September.

Stealing the limelight from the G20 summit was a lot of rumour and counter rumour coming out of Athens. The BBC and Dow Jones at one stage apparently reported that PM George Papandreou was on his way to see the President to resign. Reuters and Bloomberg said that he wasn't.

For now it seems that the later is true, although things can change very quickly with this story and who knows what tomorrow might bring. The latest news we have now is that he remains as PM but is said to be ready to drop his proposed referendum idea.

The market at least finds the later piece of news supportive as it makes default less likely, but this twisting and turning storyline is far from over yet.

The Beeb also told us that the National Institute for Economic and Social Research reckon that there's a "strong chance" of a UK recession in 2012.

In other news the ECB cut interest rates by a quarter to 1.25%, reversing what it did as recently as July.

There wasn't a great deal of fundamental grain news once again as matters in the eurozone continue to dominate.

The FAO pegged world cereal output at a record 2.325 billion tonnes this year adding that world food prices were at an 11-month low.

Ukraine said that it's grain production this season had reached 50.9 MMT as the corn harvest reaches its final stages.