EU Wheat Close

Posted by Nogger - a legend in his own mind at 18:50 | Categorized as

07/12/11 -- EU grains ended mixed with Jan 12 London wheat up GBP1.90/tonne to GBP144.90/tonne, Jan 12 Paris wheat was EUR0.25/tonne higher to EUR180.00/tonne.

Some London wheat months were slightly lower as were many Paris positions. Exactly why front month Jan 12 London wheat managed to post enough gains to make it a GBP0.85/tonne premium to further forward March is difficult to explain.

It was a low volume day as the market sits and waits, or more like hopes, for some direction to come on Friday. They may be disappointed if the comments of one German official are to go by, he said that more time may be needed to finalise plans to save the eurozone than Friday's self-imposed deadline affords.

The pound rose above 1.17 against the euro to close to its highest levels since February.

Also on Friday we have the latest missive from the USDA detailing world production and stocks numbers. Trade opinion is that they will raise slightly their estimate for world wheat ending stocks for the 2011/12 season from what they already say is the highest level in a decade.

Tomorrow we will get the figures on the latest weekly EU export licences and also the numbers on USDA weekly export sales and shipments. The latter will be particularly of interest for wheat as shipments have slumped quite alarmingly of late.

US corn sales are also on the decline. If domestic demand over there also falls away sharply once the ethanol blenders' tax credit gets removed in a couple of weeks then things could get interesting.