EU Wheat Has Quiet Day Ahead Of USDA Report
EU wheat had a quiet day Tuesday ahead of tomorrow's important USDA crop reports. Paris November milling wheat closed EUR0.25 higher at EUR130.75/tonne, and London November feed wheat closed down GBP0.65 at GBP97.60/tonne.
Tomorrow's USDA report is expected to be bearish for wheat and corn, which may provide some further downwards impetus in the midst of the European harvest.
Everywhere you look, the "experts" are all bearish on wheat. Stocks are too high, demand is too low, harvest pressure blah, blah, blah.
Lets dig out a few words like "burdensome" and "plentiful" and throw those into the mix as well.
Even our old chums at Goldman Sachs appear to have got off the wheat gravy train, saying that "the optimal Northern Hemisphere growing season reinforces our expectations of a global wheat surplus next year on top of already high inventories resulting from last year's robust harvests. We continue to believe that wheat price upside remains limited."
But then again, they did also predict that crude oil would average $150/barrel in 2009.
Tomorrow's USDA report is expected to be bearish for wheat and corn, which may provide some further downwards impetus in the midst of the European harvest.
Everywhere you look, the "experts" are all bearish on wheat. Stocks are too high, demand is too low, harvest pressure blah, blah, blah.
Lets dig out a few words like "burdensome" and "plentiful" and throw those into the mix as well.
Even our old chums at Goldman Sachs appear to have got off the wheat gravy train, saying that "the optimal Northern Hemisphere growing season reinforces our expectations of a global wheat surplus next year on top of already high inventories resulting from last year's robust harvests. We continue to believe that wheat price upside remains limited."
But then again, they did also predict that crude oil would average $150/barrel in 2009.