EU Wheat Ends Another Quiet Session Mixed

EU wheat futures closed another quiet session mixed Tuesday with Paris May milling wheat ending up EUR1.25 at EUR139.00/tonne. London May feed wheat finished down GBP1.50 at GBP109.00/tonne.

The market is desperately in need of direction, but conflicting influences continue to drag the market sideways.

Very cold temperatures in the US over the weekend and Monday night must surely have caused some significant damage to wheat on the Plains. Temperatures fell as low as 6 degrees F, according to some reports, with heavy losses anticipated in Oklahoma, where wheat development was most advanced, with eighty six percent of the state's wheat crop jointing, according to StormX.

It may take a week or so for some firm news to emerge on how badly the US crop may have been damaged by the recent plunge in temperatures.

A firmer US dollar helped support European wheat prices, although weaker crude oil and falling equities capped gains.

French exports remain well above last year, with stocks surprisingly lower than year ago levels. German wheat production is also seen down in 2009, along with that in the UK. Judging on much of the data emerging recently, it seems that the anticipated "huge carryover" may not be anything like as large as some in the media are expecting.