EU Wheat Closes With Modest Gains

EU wheat futures closed modestly higher in thin, low volume trade Monday. London January feed wheat closed up GBP0.35 at GBP93/tonne with just 81 lots moved, whilst Paris November milling wheat finished EUR1.00 higher at EUR145.00/tonne.

Gains in Chicago wheat lent some support, as did a resurgent dollar.

The Baltic Dry Index fell to its lowest level since 2001 Monday, signalling freight rates should be attracting interest from foreign buyers.

However, sharply higher world production, as confirmed again last week by the IGC, will surely cap gains for the time being.

It seems likely that we are in for a quiet week, with the US election tomorrow, and likely changes in EU interest rates Thursday keeping participants on the sidelines.