LIFFE wheat grinds lower

London feed wheat futures are continuing to grind lower this morning with most actively traded July and Nov both £1.50/tonne easier. Recent rains are seen as largely beneficial and with warm, dry weather forecast for the next 7-10 days things are in great shape to produce a bumper crop.

MATIF milling wheat is EUR2 lower for the most active Nov with sellers a little more cautious until the impact of recent rains on quality is clearer.

US wheat futures fell hard last night as Monday's rally was seen as overdone and simply a selling opportunity. Harvest activity is advancing and seems likely to weigh on prices for the time being.

The CFTC probe into fund activities and lower crude oil is also weighing on prices. Crude was $123.62/barrel at 10.30am, over $11/barrel below it's recent record high.