EU Wheat Closing Comments

EU wheat futures closed higher Friday in a very quiet low volume session where many participants aren't back in the marketplace until Monday.

Paris March milling wheat closed up EUR1.25 at EUR138.25/tonne. London May feed wheat closed up GBP1.50 at GBP114.00/tonne, with just 24 lots moved.

London wheat has risen around GBP20/tonne from contract lows set at the beginning of December, the vast majority of that increase being currency-led.

One euro was worth 84 pence at the end of November, by the close of 2009 that had risen to almost 98 pence. Against the dollar meanwhile sterling has fallen from $1.54 to around $1.45 during the same time frame.

I'm still not seeing much evidence that despite this decline, and our theoretical competitiveness on the export arena, is actually being translated into fresh hardcore export business.