EU Wheat Crashes Lower On Outside Markets
EU wheat futures closed lower with Paris March milling wheat closing -EUR3.75 at EUR130.75/tonne. London January feed wheat fell GBP0.65/tonne to GBP92/tonne.
Sharply lower crude oil and equities markets set the tone from the off, with crude crashing through the $50/barrel level after OPEC deferred a decision to reduce output until its next meeting on Dec. 17.
European and US stocks were also down heavily, with the FTSE100, German Dax and French CAC 40 all down more than 5 percent.
The pound had a torrid day, posting its largest one day fall in percentage terms since sterling crashed out of the Exchange Rate Mechanism (ERM) in 1992.
This helped limit losses on London wheat as it should make UK wheat exports more competitive. Even so there is precious little export business around at the moment.
Farmers remain reluctant sellers at current levels, and are unlikely to return to the market now until after the new year.
By then however, some may have their hands forced, as they may need to sell to generate enough cash to pay for fertiliser and other inputs.
Some, on the other hand, may decide to reduce their fertiliser application rates, running the risk of sharply lower yields in 2009.
Sharply lower crude oil and equities markets set the tone from the off, with crude crashing through the $50/barrel level after OPEC deferred a decision to reduce output until its next meeting on Dec. 17.
European and US stocks were also down heavily, with the FTSE100, German Dax and French CAC 40 all down more than 5 percent.
The pound had a torrid day, posting its largest one day fall in percentage terms since sterling crashed out of the Exchange Rate Mechanism (ERM) in 1992.
This helped limit losses on London wheat as it should make UK wheat exports more competitive. Even so there is precious little export business around at the moment.
Farmers remain reluctant sellers at current levels, and are unlikely to return to the market now until after the new year.
By then however, some may have their hands forced, as they may need to sell to generate enough cash to pay for fertiliser and other inputs.
Some, on the other hand, may decide to reduce their fertiliser application rates, running the risk of sharply lower yields in 2009.
