EU Wheat Follows US Lower

EU wheat futures closed lower Wednesday, pressured late in the session by a sharply weaker CBOT market.

Paris January milling wheat closed down EUR3.25 at EUR143.25/tonne. London November feed wheat ended down GBP0.75 at GBP90.25/tonne.

Volume was light and British and French farmers are reluctant sellers at current levels. Still, London wheat finally seems to have levelled off around the GBP90/tonne mark after months of steep declines.

London Feed Wheat Nov '08 Future:

Wild fluctuations in the currency markets are making for choppy trade, with the pound moving as much as 4-5 cents in a day against the dollar several times over the last few weeks.

The forex markets are bracing themselves again this morning for changes in base rates from the BoE and ECB. The pound has fallen from $1.62 yesterday afternoon to around $1.58 in early trade Thursday morning.

Although European wheat may now have a slight edge on US grain, Russia and Ukraine are still eager sellers for any export business that is around from North Africa and the Middle East.