EU Wheat Continues To Nudge Higher

EU wheat futures nudged a little higher yet again Thursday with November Paris milling wheat trading up EUR1.25 at EUR156.00/tonne, and London November feed wheat closing up GBP0.50 at GBP130.50/tonne.

Prices had been lower for much of the day, following weaker outside markets, but a report from Strategie Grains trimming EU soft wheat production for 2009/10 to 128.9 MMT, 1.7 MMT below their April estimate got the market thinking.

There is no doubt whatsoever that EU and global production will be sharply lower in 2009, it's just a question of by how much.

Much of the Strategie Grains' losses are due to dry conditions in Eastern Europe. There will also be some spillover losses in Ukraine and the Black Sea areas of Russia.

Meanwhile wet weather dogs plantings in the US for spring wheat, and drought is seen cutting Argentinean seedings substantially.