EU Wheat Ends Week Posting Impressive Gains

Posted by Nogger - a legend in his own mind at 08:42 | Categorized as

13/07/12 -- EU grains finished higher with Nov 12 London wheat up GBP2.25/tonne to GBP188.00/tonne and Nov 12 Paris wheat EUR4.50/tonne firmer at EUR258.75/tonne.

For the week wheat both sides of the Channel, and the Atlkantic, posted impressive gains with Nov 12 London wheat GBP7.50/tonne higher and Nov 12 Paris wheat rising EUR16.75/tonne as continued wet weather boosts milling wheat premiums.

Paris wheat also gained as the euro sank to a 3 1/2 year low against the pound as Moody's cut Italy's credit rating two notches and warned that further cuts were possible.

The HGCA said that UK farmers planted just over 2 million hectares of wheat for the 2012 harvest, if it ever comes, an increase of 2% and the highest area since 2008. Over half the wheat planted is group 4 varieties. That news, coupled with the weather, is likely to keep milling wheat commanding big premiums over feed this season.

The total barley area is up 5% to just under 1 million hectares, whilst the oilseed rape area is a record 712,000 ha. The area planted to all three is seen lower than last year in Scotland due to adverse weather conditions at planting time in the autumn.

All we need now is some demand. Export markets are sluggish, and the pound firming against the euro doesn't help.

ABF issued an interim management statement this week that said "Production at Vivergo’s bioethanol plant in Hull, an installation of some complexity, which has required an extended commissioning programme, has been delayed until the end of the calendar year."

Meanwhile, despite reports that they were gearing up for a re-open, Ensus remains firmly shut for the time being.