EU Wheat Futures Post Modest Gains

EU wheat futures posted modest gains Monday with Paris November milling wheat closing up EUR2.00 at EUR172.00/tonne. London November feed wheat finished up GBP0.50 at GBP107.00/tonne.

Firmer outside markets helped wheat, with crude oil and metals both firmer.

However, a sharply weaker dollar on the back of the proposed $700 billion US rescue package for the financial markets will do little to help EU export ambitions.

UK wheat quality remains a problem,in the north in particular, and it is difficult at this stage to see where all this extra low grade wheat will go.

Strong competition from the Black Sea remains, plus a large EU corn crop is about to come onto the market.

Fundamentally, nothing much has changed. Large crop, low prices.