David Sheppard, Gleadell’s managing director talks about wheat’s progress in the latest grain market report.

The knock on effects of last week’s USDA report continue to influence prices with levels just managing to pick up from the lowest levels hit last Friday, albeit without much conviction.

Russian wheat has been included in the latest GASC tender for Egypt for the first time since August 2010 - after they said they wouldn’t be buying from Russia till 2012. Thereby knocking French and US wheat out of the equation for Egypt if GASC actually decide to forgive them and to buy from Mr Putin and his friends.  The will give us a real guide as to what volume and what price the Russians are willing to trade at but we fear this could be at levels that make EU wheat look very expensive.

Stop press – The Egyptians have bought 180,000mt of Russian wheat at around $244 fob - £152 around a €30 discount to French values.

French wheat yields are reported as coming in as per expectations at around 15–20% down on 2010 with harvest now reaching central France.

The market remains nervous and liable to another dramatic price move on any significant weather or crop news.