EU Wheat Ends Sharply Lower

EU wheat futures closed sharply lower Monday in a volatile session as traders struggled to come to terms with some very, very conflicting stories.

In my opinion, today's USDA report was one of the most stunning in recent history. The figures were truly out of this world.

The details of the report are to be found elsewhere on this blog, for now we will deal with the situation as regards the EU crop.

It was a very volatile session, with EU whest trading higher early before the USDA report came out. After that all hell broke loose, with the numbers coming in stunningly bearish for corn and soybeans, but actually quite bullish for wheat.

The market had to struggle between the very bearish corn numbers, the quite bearish figures for soy, and the conflict of interests for wheat. Although the old-crop ending stocks for wheat were bullish, the new-crop plantings were very bearish indeed.

On top of this the dollar was strongly firmer, and crude oil sharply weaker.

March Paris milling wheat closed down EUR6.25 at EUR142.75/tonne,. May London feed wheat ended down GBP2 at GBP113.00/tonne.