London wheat crashes lower
London wheat futures are sharply lower today taking a lead from eCBOT. November is down GBP1.50 at GBP141/tonne and March down GBP2.70 at GBP144.80/tonne.
November is down GBP14/tonne in the last fortnight.
The USDA Friday forecast the world wheat crop at a record high 664 million tons, which is up 1.3 million tons from last month's projection and an increase of 53 million tons or 8.8% on the year, which is adding some pressure.
Helping to drive the upward revision, USDA raised its forecast for European Union wheat production 1.7 million tons to 141.70 million. This is a jump from 119.5 million in 2007-08.
Amplifying the large crop sentiment, the French Agriculture Ministry Friday forecast French soft wheat output to rise 19% on the year to 37 million tons.
The Spanish Agriculture Ministry last week raised its estimate for the country's winter cereal crop to 18.95mmt from 15.81mmt previously, mainly due to favourable rains during spring / early summer.
The Association of German farming cooperatives estimates the German 2008 cereal crop at 46.1mmt, an increase of 14% on last year. Wheat crop is estimated at 23.332mmt, an increase of 13%.
Recent rains in Europe, and particularly the UK, are delaying the harvest and may affect quality increasing the amount of feed grade wheat available.
The barley fields around here are looking just about ready to cut if they could get a week without rain. Certainly some of the fields I was looking at yesterday contained some very bold looking samples.
November is down GBP14/tonne in the last fortnight.
The USDA Friday forecast the world wheat crop at a record high 664 million tons, which is up 1.3 million tons from last month's projection and an increase of 53 million tons or 8.8% on the year, which is adding some pressure.
Helping to drive the upward revision, USDA raised its forecast for European Union wheat production 1.7 million tons to 141.70 million. This is a jump from 119.5 million in 2007-08.
Amplifying the large crop sentiment, the French Agriculture Ministry Friday forecast French soft wheat output to rise 19% on the year to 37 million tons.
The Spanish Agriculture Ministry last week raised its estimate for the country's winter cereal crop to 18.95mmt from 15.81mmt previously, mainly due to favourable rains during spring / early summer.
The Association of German farming cooperatives estimates the German 2008 cereal crop at 46.1mmt, an increase of 14% on last year. Wheat crop is estimated at 23.332mmt, an increase of 13%.
Recent rains in Europe, and particularly the UK, are delaying the harvest and may affect quality increasing the amount of feed grade wheat available.
The barley fields around here are looking just about ready to cut if they could get a week without rain. Certainly some of the fields I was looking at yesterday contained some very bold looking samples.
