EU Grains Close

November London wheat closed GBP5.80 higher at GBP139/tonne; November Paris wheat ended EUR8.75 higher at EUR189.50/tonne.

London and Chicago wheat made fresh 13-month highs, whilst Paris wheat set a new 2 year high.

More than 100,000 lots traded today on Paris wheat futures, a sure sign that this latest rally is speculatively led.

Russian wheat losses has set the market on fire, with speculation that exports will at the very least be halved this season.

Regular Russian wheat buyer Egypt announced that they would relax import rules to permit future wheat tenders to include a two port of loading option. That should help French wheat regain a foothold in the Egyptian wheat import tender.

Early reports suggest that the new UK winter wheat harvest is progressing quite well. Yields are currently coming in a bit on the low side.

Romania said that heavy rains earlier in the season will likely reduce their wheat crop to just under 6 MMT, from early hopes for a crop of around 6.7 MMT. Quality has also suffered, they said.