EU Wheat Closes Lower On Currency
EU wheat futures closed lower Wednesday with Paris March milling wheat ending down EUR1.25 at EUR151.50/tonne and London May feed wheat closing down GBP2.25 at GBP123.00/tonne.
As has been said on here many times before, it's all about currency, today was a bad day at the office for the dollar, and wheat acted accordingly.
Still, UK wheat futures have gone from a December low around GBP88/tonne to GBP120/tonne so I guess we can't complain too much.
Eastern European wheat is in demand as reports of Czech, Polish and Hungarian wheat being offered cheaply into the market circulate.
But where are the actual offers? Is it a case of Chinese whispers? It reminds me somewhat of the old days when I used to work for Bunge, who owned KW at the time. In those days every farmer in the UK used to say to whatever rep wandered up their drive 'yeah, but of course KW are £5/tonne cheaper.'
It didn't matter if they were or not, every rep in the country reported back that he hadn't got the order because KW were cheaper. Not that the farmers were using that as a bargaining tool of course. God forbid.
As it happens Hungarian wheat is currently EUR70/tonne, with free shipment to anywhere in Europe, and payment in 6 months, plus a free set of steak knives in a presentation box. It's just that they're sold out, so if you want any you will have to go elsewhere.
As has been said on here many times before, it's all about currency, today was a bad day at the office for the dollar, and wheat acted accordingly.
Still, UK wheat futures have gone from a December low around GBP88/tonne to GBP120/tonne so I guess we can't complain too much.
Eastern European wheat is in demand as reports of Czech, Polish and Hungarian wheat being offered cheaply into the market circulate.
But where are the actual offers? Is it a case of Chinese whispers? It reminds me somewhat of the old days when I used to work for Bunge, who owned KW at the time. In those days every farmer in the UK used to say to whatever rep wandered up their drive 'yeah, but of course KW are £5/tonne cheaper.'
It didn't matter if they were or not, every rep in the country reported back that he hadn't got the order because KW were cheaper. Not that the farmers were using that as a bargaining tool of course. God forbid.
As it happens Hungarian wheat is currently EUR70/tonne, with free shipment to anywhere in Europe, and payment in 6 months, plus a free set of steak knives in a presentation box. It's just that they're sold out, so if you want any you will have to go elsewhere.
