Wheat Dryness remains

Wheat dryness in Europe is a huge problem in a moment and in my trip trough France I could see how dry the country is compared to last year.. I believe the Long Term fundamentals for wheat are slowly turning decidedly bullish..

Peabody scouting MacArthur?

There are rumours today that Peabody energy might make a new bid on MacArthur Coal - We own this and it might be a good idea to buy some more...

Wheat Gains for Fifth Day in Paris as Dry Weather May Hurt Crop ...

We hold our longs on wheat - its always darkest before dawn - seem to be little bits of bullish news coming out of the woodwork all over the world over the last few weeks ...

July 5 (Bloomberg) -- Wheat climbed for a fifth day in Paris on concern that hot, dry weather in northwestern Europe and Russia will hurt production.

Milling wheat for November delivery rose 2.7 percent to 154.25 euros ($193.32) a metric ton, the highest close for the contract since June 2009, on NYSE Liffe. The grain has climbed 11 percent in the past five sessions.

Temperatures in France and Germany, the European Union’s largest wheat growers, exceeded 30 degrees Celsius (86 degrees Fahrenheit) last week, reducing the yield potential for local crops. The U.K., which ranks third, had its driest first half of a year since 1929, the country’s Met Office said June 30.

Prices rose on “concerns about damage because of the strong heat,” Paris-based farm adviser Agritel said in a comment on its website. “Weather conditions in Russia remain very adverse at the moment, with very high temperatures.”

Russia said July 1 it will cut the forecast for this year’s grain crop from the current 88 million to 90 million tons as the country suffers its worst drought in a decade.

Rainfall in some of the main French, German and U.K. grain-growing regions was between 60 percent and 80 percent of normal in the 180 days through June 29, according to forecaster Martell Crop Projections.

Dry Conditions

“Western Europe drought damage may be underestimated,” agricultural meteorologist Gail Martell, who heads the crop- weather forecaster, said in a July 2 note on her website. “Conditions have been dry for six months.”

Trading on the Chicago Board of Trade was closed today for the Independence Day holiday.

Corn for November delivery rose a record 4.4 percent to 160 euros a ton in Paris, advancing for a fourth session to the highest closing price since the contract started trading in June last year.

“In corn, the dry conditions in France are starting to worry the operators, while inversely in Hungary it’s floods that seem to have destroyed about 16,000 hectares (39,500 acres),” Agritel said.

Excessive rain in May and June destroyed crops in Hungary, according to the country’s agriculture ministry. France is the European Union’s largest corn producer, ahead of Italy and Hungary.

Rapeseed for November delivery rose 0.6 percent to 328.75 euros a ton in Paris. Malting barley for delivery in March added 4.7 percent to 185 euros a ton.