EU Grains Close
22/08/11 -- EU grains finished with Nov London wheat up GBP2.45/tonne to GBP166.00/tonne and Nov Paris wheat EUR1.50/tonne higher at EUR203.25/tonne.
For London wheat this was the highest close for a front month since July 14th and for Paris wheat the best close since Jun 21st.
Equities recovered a little from the recent rout as a degree of optimism returned to the market. Crude oil rebounded from losses early in the day to see NYMEX around two dollars higher by the close of European trading.
US grains futures were higher in the overnight Globex session which carried through into afternoon trade ahead of tonight's USDA crop progress report.
There's talk of Russian wheat quality downgrades to add to those in Ukraine and Germany. Widespread wet weather expected across much of the UK starting tomorrow will also stall the wheat harvest.
Wet weather in the US spring wheat areas continues to dog the harvest there too where there is talk of yields being 5-10 bushels/acre below average.
Double dip recession fears however are still bubbling along under the surface which could trigger money to pour out of grains at any time.