EU Wheat Ends Slightly Lower In Quiet Trade
EU wheat futures closed modestly lower in quiet pre-Christmas trade with Paris January milling wheat futures ending down EUR0.25 at EUR130.75/tonne, and London May feed wheat closing unchanged at GBP96.75/tonne with just 62 lots moved all day.
It is normally very quiet in December, with farmers reluctant sellers unless substantial premiums can be made for some reason.
This season looks like being no different to any other, with one UK compounder reporting that to buy ex-farm wheat at 'theoretical ex-farm levels' in the current climate is very difficult, if not impossible.
"Once it's in the barn, at this time of year they don't want to know," he said.
"It may be different in the new year, if they need the cash to buy fertiliser or pay for other inputs. Overall, though I expect things to be very quiet now until January," he added.
The falling value of the pound may help UK grain become more competitive for export, but buyers who want the quality we have, seem to be few and far between.
All in all, it looks like a stand off now until after Christmas, with both buyers and sellers seeming reasonably comfortable with their positions.
I think, however, if you put a gun to most people's heads and asked for a prediction on prices for the new year, around 75%+ would opt for lower.
Nogger isn't most people. The same 75%+ would have also voted for higher back in the spring.
Is there a Burtons round here??
It is normally very quiet in December, with farmers reluctant sellers unless substantial premiums can be made for some reason.
This season looks like being no different to any other, with one UK compounder reporting that to buy ex-farm wheat at 'theoretical ex-farm levels' in the current climate is very difficult, if not impossible.
"Once it's in the barn, at this time of year they don't want to know," he said.
"It may be different in the new year, if they need the cash to buy fertiliser or pay for other inputs. Overall, though I expect things to be very quiet now until January," he added.
The falling value of the pound may help UK grain become more competitive for export, but buyers who want the quality we have, seem to be few and far between.
All in all, it looks like a stand off now until after Christmas, with both buyers and sellers seeming reasonably comfortable with their positions.
I think, however, if you put a gun to most people's heads and asked for a prediction on prices for the new year, around 75%+ would opt for lower.
Nogger isn't most people. The same 75%+ would have also voted for higher back in the spring.
Is there a Burtons round here??
