EU Wheat Back Into Downwards Groove

EU wheat futures closed lower Wednesday as the market renewed its downwards trend following a couple of days of brief respite at the start of the week.

Paris November milling wheat closed down EUR4.75 at EUR142.25/tonne and London November feed wheat ended down GBP3.0 at GBP90/tonne.

Buyers remain on the sidelines, licking their wounds on any purchases already made. With the market firmly entrenched in a downwards trend there is little encouragement for them to return to the fray.

In the UK compound feed demand remains slow, which is also adding some downwards pressure.

Data released today by the HGCA shows that U.K. wheat exports for July and August are almost half what they were for the same period the previous year.

The figures show that 168,392 metric tonnes were exported throughout the two-month period, compared with 291,347 metric tonnes the previous year.

The traditionally No1 export home, Spain, only took 32,880 tonnes during this period, compared with 125,128 tonnes last year.

Meanwhile a bumper European corn harvest is in full swing. EU-27 estimates put the bloc's maize crop this year at around 60.2 million tonnes, dramatically up from last year's 48.2 million tonnes following higher plantings and better weather.

November Paris corn closed down EUR2.50 at EUR127.50/tonne.