EU Wheat Closing Comments

London May wheat closed down GBP0.25 Friday at GBP94.90/tonne, May Paris wheat ended EUR0.25 easier at EUR123.25/tonne. No changes there then.

Wheat can't seem to buy a rally at the moment with doom and gloom around every corner, or at least so it seems.

The EU issued soft wheat export licenses for 292,000 MT in the week ending 2nd March, that brings the total volume of exports granted so far this marketing year to 11.9 MMT, 17% down on the 14.4 MMT granted this time in 2009.

With wheat prices tumbling on a seemingly daily basis consumers aren't exactly falling over themselves to buy at the moment.

Corn production estimates in Argentina keep growing, with private US analytical firm Informa yesterday pegging output there at 21 MMT, fully 2.8 MMT up on it's last estimate.

Next week all eyes will be on world production data and US stocks numbers from the USDA due to be released at lunchtime on Wednesday. 2009/10 wheat and corn ending stocks are expected to be trimmed slightly.

The pound appears to have recovered from its pasting at the beginning of the week, at least for now. More thrashings lie ahead I'm sure, as BOE governor King seems positively delighted with sterling's demise.

It's never easy is it?