EU Wheat Futures Ease; Ferts Market Staring Into The Abyss

EU wheat futures are a little easier in quiet trade Tuesday, with London Jan feed wheat down 50p at GBP96.50/tonne whilst Paris Jan milling wheat is down EUR1 at EUR138.75/tonne.

There is very little export trade to report for EU wheat.

Japan are tendering today for 91,000mt US wheat. The Philippines are also tendering for wheat, which will also most likely be filled with US wheat. Bangladesh are in the market for 100,000mt wheat, which will probably go to Russia.

EU farmers are largely concentrating on finishing up planting the winter crop, and are now unlikely to return to the market as sellers until the new year.

Yields remain a concern in 2009 due to the high price of inputs, particularly fertiliser. Although urea prices have reported fallen by over £100/tonne (or circa 25%) in the last month, other ferts have yet to follow suit, giving rise to talk of price-fixing and cartels*.

Reports are reaching Nogger Towers of some merchant stores full of expensive fertiliser that nobody wants, whilst the market is (unsurprisingly, given everything else that's happened) poised to drop like a stone.

"I wouldn't be long of a free 5grm sachet in an Interflora flower delivery," said one wag.

*Some of the largest companies in America were recently accused of price-fixing on potash: I make special price for you my friend