EU Wheat Futures Sharply Higher

EU wheat futures closed sharply higher Monday, supported by firmer US markets over the holiday period and steadier crude oil.

UK wheat was also helped by another day of record lows against the euro for sterling.

March Paris milling wheat ended up EUR5.50 at EUR137.00/tonne. London November feed wheat closed up GBP5 at GBP122.50/tonne.

Trade was generally quiet, with many participants either content to sit on the sidelines until the new year, or still away on holiday.

In such a low volume session it seems likely that the upside on London wheat was overdone & exaggerated.

The pound continues to drift ever closer to parity with the euro, today hitting an all-time low of 1.0210. This should provide underlying support for wheat. However, export homes still need to be found in the new year if we are going to make serious inroads into our exportable surplus.