EU Wheat Drifts Lower

EU wheat futures continued their slide Friday, weighed down by large production numbers, lack of export demand and the delay to the proposed rescue package in the States.

November Paris milling wheat closed down EUR3.00 at EUR165.75/tonne. November London feed wheat ended down GBP2.75 at GBP103.00/tonne.

EU farm union Copa-Cogeca said Friday that EU 2008/09 soft wheat production was expected to rise by about 23 percent to 136.86 million tonnes, while this year's maize crop was likely to increase by 31 percent to 63.37 million tonnes.

Toepfer this week pegged the EU soft wheat crop even higher at 139.4mmt.

"We simply don't seem to be able to price ourselves into any volume of export business at the moment, with most homes that we could supply being filled by much cheaper wheat from Black Sea origins," said Frontier in their latest market report.

In the UK reports indicate that late-cut wheat has certainly suffered both in quality and bushel weight which will continue to widen the differential between feed amd milling wheats.