EU Wheat Futures Continue Slide; UK yields astonishing
Paris-based milling wheat futures closed lower for the seventh session in a row Monday with November down EUR4 at EUR182/tonne.
With no guide coming from Chicago today due to the Labor Day holiday trading was slow and futures drifting lower on a lack of bullish news traders say.
Weaker crude oil following the downgrade of Hurricane Gustav to Category 2 added to wheat's woes late in the session.
London feed wheat closed with November GBP1.50 lower at GBP118.50, also its seventh straight lower close, and its lowest level in more than twelve months.
Reports emerging over the weekend continue to suggest astonishing yields on what wheat has been cut in the UK with 4-5mt/acre commonplace and some reports of yields in excess of 6mt/acre.
The six million dollar question now is where is it all going to go? Many storage facilities are already full and reports of wheat having to be stored outside are reaching Nogger Towers.
It seems that, carried away by a wave of enthusiasm, UK farmers planted as much wheat as they possibly could and might have used some of their extra windfall earnings to buy a new tractor or even a combine. They seem to have completely forgotten to invest in new storage however.
And all this with less than half the crop cut. Oh dear, there's going to be tears before bedtime on this one.
With no guide coming from Chicago today due to the Labor Day holiday trading was slow and futures drifting lower on a lack of bullish news traders say.
Weaker crude oil following the downgrade of Hurricane Gustav to Category 2 added to wheat's woes late in the session.
London feed wheat closed with November GBP1.50 lower at GBP118.50, also its seventh straight lower close, and its lowest level in more than twelve months.
Reports emerging over the weekend continue to suggest astonishing yields on what wheat has been cut in the UK with 4-5mt/acre commonplace and some reports of yields in excess of 6mt/acre.
The six million dollar question now is where is it all going to go? Many storage facilities are already full and reports of wheat having to be stored outside are reaching Nogger Towers.
It seems that, carried away by a wave of enthusiasm, UK farmers planted as much wheat as they possibly could and might have used some of their extra windfall earnings to buy a new tractor or even a combine. They seem to have completely forgotten to invest in new storage however.
And all this with less than half the crop cut. Oh dear, there's going to be tears before bedtime on this one.
