Untitled Document
18/05/12 -- EU grains finished higher with May 12 London
wheat ending up GBP1.00/tonne at GBP175.00/tonne, new crop Nov 12 was GBP5.00/tonne
higher to GBP158.80/tone. Nov 12 Paris wheat was up EUR8.25/tonne to EUR215.25/tonne.
On the week as a whole May 12 London wheat gained GBP2.50/tonne
whilst Nov 12 added an impressive GBP10.60/tonne to close at its highest in
more than six weeks. Nov 12 Paris wheat was EUR19.00/tonne higher on the week,
closing at it's best levels in eleven months.
Read More
The second successive sharp monthly reduction to EU-27
wheat production prospects from Strategie Grains, and talk of potentially serious
problems developing for Russian wheat unless rain arrives soon, were behind
this week's rises.
Winter kill losses in France, Germany and Poland are
said to have been heavier than realised, according to Strategie Grains. What
has survived the winter appears to be in decent shape in France at least where
FranceAgriMer now rate 67% of the wheat crop in good/excellent condition, up
from 65% a week ago.
Wheat appears to have done a exceptionally good job of
shrugging off outside market influences this week, with Brent and NYMEX crude
both slumping to their lowest levels of the year so far on the back of the ongoing
European debt crisis.
Euro weakness is seen remaining, which should at least
help to support Paris wheat. Soft wheat exports out of Rouen more than doubled
to 123,400 MT this week, helped by shipments of more that 75,000 MT to Algeria.
Chicago wheat gained more than a dollar a bushel, around
17%, this week - way outperforming corn and soybeans. Dryness concerns also
exist here, particularly in the top producing state of Kansas where the USDA
cut good/excellent ratings by eight percentage points on Monday.