Nogger's Blog

15/02/12 -- EU grains finished mostly lower with front month Mar 12 London wheat flat at GBP164.00/tonne and Mar 12 Paris wheat down EUR2.00/tonne to EUR209.00/tonne.

News, once again, that the Greek "deal" on austerity was maybe not quite all that it originally seemed sent the euro lower. There's talk now of some form of "pro-tem" deal being done to avoid a Greek default in March, but not hand over anything but the bare minimum of cash until after the elections that are due there due in April take place.

It is now being quietly suggested that opposition to their membership of the eurozone bloc is privately increasing amongst unnamed member countries.

News that Holland and Italy are now officially in recession and that Germany has just had its first negative growth quarter since 2009 added to the general feeling of discontent. UK unemployment at 8.4% is now at the highest level in 16 years hardly improved things either.

The feeling is still that European wheat is overvalued on the world stage. Most of the UK merchants meanwhile are bemoaning the stagnant end-user interest and general lack of business around at the moment.

After the close Egypt announced a second wheat tender within a week, US wheat won the last one hands down.

The recent cold snap across Europe and the Black Sea area, the effects of which are still to be evaluated, appears to have abated for now.