EU Wheat Ends Week Lower On Profit-Taking

EU wheat closed lower Friday with November Paris milling wheat down EUR2.00 at EUR154/tonne, and November London feed wheat down GBP1.75 at GBP128.75/tonne.

On the week as a whole prices showed little change with November Paris milling wheat down EUR2.00/tonne and November London feed wheat GBP0.25/tonne higher.

Prices were overdue a bit of profit-taking consolidation after recent rises. Decent rains across parts of France, Germany and the UK Thursday/Friday and more forecast over the weekend also encouraged some profit-taking.

In the UK however a £10.25 spread between July and November is exceptional, and will do little to encourage nearby selling. That differential has to narrow at some point, and there could be an element of that creeping in as we get closer ot harvest-time.

Strategie Grains lowered their forecast EU-27 soft wheat production to 128.9 MMT this week, from 130.6 MMT a month ago and 140.0 MMT in 2008.

Meanwhile total EU-27 grain production is seen at 289.7 MMT, down 4.5 MMT from last month and 20.3 MMT, or 7.2%, below last year's 310.0 MMT, they say.