EU Wheat Closing Comments
London wheat closed mostly lower Friday, with Paris mainly a little firmer. November London feed wheat was GBP1.30 lower at GB)102.10/tonne and November Paris milling wheat up EUR0.75 at EUR139.50/tonne.
Paris wheat was supported by the acute weakness of the euro which fell to fresh multi-year lows against the dollar and broke through 1.21 against the pound for the first time since late 2008.
Weather concerns seem to have largely disappeared for now, with much of the UK, northern France and Germany receiving at least some rain in the past fortnight.
November London wheat has fallen GBP8.90 in the past two weeks.
Chicago wheat has also fallen sharply, setting fresh contract lows again Friday as the strong dollar continues to hamper US exports. Having missed out again in this week's Egyptian tender, the USDA reported net export sales of only 241,100 MT on Friday, below trade estimates for sales of 250-500,000 MT.
Despite lower production this year, the usual suspects in the Black Sea region will be gearing themselves up for another aggressive early season marketing campaign as soon as the harvest gets underway.
Lack of storage and the urgent need for cash will have traders in these countries, and those of eastern Europe, clamouring to take whatever export orders they can find.
That will only depress prices further, with little prospect of better returns until the new glut of supply is cleared, and that may not happen until 2011.
Paris wheat was supported by the acute weakness of the euro which fell to fresh multi-year lows against the dollar and broke through 1.21 against the pound for the first time since late 2008.
Weather concerns seem to have largely disappeared for now, with much of the UK, northern France and Germany receiving at least some rain in the past fortnight.
November London wheat has fallen GBP8.90 in the past two weeks.
Chicago wheat has also fallen sharply, setting fresh contract lows again Friday as the strong dollar continues to hamper US exports. Having missed out again in this week's Egyptian tender, the USDA reported net export sales of only 241,100 MT on Friday, below trade estimates for sales of 250-500,000 MT.
Despite lower production this year, the usual suspects in the Black Sea region will be gearing themselves up for another aggressive early season marketing campaign as soon as the harvest gets underway.
Lack of storage and the urgent need for cash will have traders in these countries, and those of eastern Europe, clamouring to take whatever export orders they can find.
That will only depress prices further, with little prospect of better returns until the new glut of supply is cleared, and that may not happen until 2011.