EU Wheat Ends Lower Again

EU wheat futures started March on a familiar note, closing lower across the board in line with the recent trend.

Paris May milling wheat futures closed down EUR2.75 at EUR135.25/tonne, whilst London May feed wheat ended down GBP3.25 at GBP109.25/tonne.

The market seems to be generating into a bit of a stand-off. Farmers don't want to sell at current levels and consumer don't want to buy. Each is convinced that the market will go their own way.

World output is seen lower in 2009, significantly so by some analysts, yet prices are being dragged lower by outside influences like equities, crude oil and stocks which have fundamentally little to do with grains supply or demand.

It seems that to get this market up we need some rude awakening calls on global supply. We might just get that when the crop in the northern hemisphere finally awakes from winter dormancy.