EU Wheat Ends Higher

EU wheat futures closed higher Monday, but well off session highs with May Paris milling wheat ending up EUR0.50 at EUR137.50/tonne, and May London feed wheat closing up GBP1.10 at GBP110.50/tonne.

May London feed wheat touched GBP112/tonne and May Paris milling wheat EUR141/tonne earlier in the session, but failed to hold onto those early gains.

Trade is still stuck largely in a sideways pattern, with seemingly little hope of breaking out of this range until more is known about the likely size of northern hemisphere crops later in the year.

The threat of crop damage from a weekend freeze in the US is supportive, as is lower EU production for 2009/10.

Large old-crop supplies however continue to cap any potential rallies, at least for t he time being.