EU Wheat: Is The Party Over Already?
EU wheat futures closed mixed around unchanged Tuesday despite early euphoria surrounding central banks' intervention into world economic markets.
November Paris milling wheat closed up EUR1.50 to EUR147.00/tonne and London November feed wheat ended down GBP1.25 at GBP93/tonne.
The markets closed higher Monday, which spilled over into early trade Tuesday, on borrowed strength from outside markets.
However, by late afternoon, prices were drifting lower again as Chicago ran out of steam and traders refocused their attentions on market fundamentals.
Unfortunately, market fundamentals are not bright, against a backdrop of increased supply and poor export demand.
Whilst the economic rescue plan may well stave off the worst, it seems highly unlikely that it will prevent the global economy from slipping into recession. And that does not augur well for demand.
November Paris milling wheat closed up EUR1.50 to EUR147.00/tonne and London November feed wheat ended down GBP1.25 at GBP93/tonne.
The markets closed higher Monday, which spilled over into early trade Tuesday, on borrowed strength from outside markets.
However, by late afternoon, prices were drifting lower again as Chicago ran out of steam and traders refocused their attentions on market fundamentals.
Unfortunately, market fundamentals are not bright, against a backdrop of increased supply and poor export demand.
Whilst the economic rescue plan may well stave off the worst, it seems highly unlikely that it will prevent the global economy from slipping into recession. And that does not augur well for demand.
