EU Wheat Ends Mostly Lower

Posted by Nogger - a legend in his own mind at 18:56 | Categorized as

02/03/11 -- EU wheat closed lower with Mar London wheat down GBP2.25 to GBP197.60/tonne and new crop Nov GBP2.00 easier at GBP161.00/tonne. Mar Paris wheat fell EUR0.25 to EUR257.00/tonne, with Nov also EUR0.25 lower at EUR218.25/tonne.

London wheat was particularly disadvantaged by a stronger pound hitting fresh 13 month highs against the US dollar. UK feed wheat has done a good job of rationing demand for it, with March closing at the equivalent of EUR232.50/tonne, almost exactly the same price as Paris corn.

The HGCA say that the milder February weather has encouraged early spring growth with crops more advanced than last year. Disease levels are low, they add.

The mild weather also brings with it thoughts of turnout being not that far away. With feed prices where they are relative to the levels that livestock farmers are receiving for their finished products summertime demand looks like being sluggish at best.

Weather prospects for US wheat look better than they did, with some potentially decent rains in the 7 day forecast, although the crop there is far from out of the woods yet. The Chinese situation has improved dramatically over the past week.

The situation in Libya shows no signs of being resolved anytime soon, continuing to push up crude oil prices and pulling money out of the grains sector.