EU Wheat Follows US Market Higher
EU wheat futures closed higher Friday, buoyed by sharply firmer US markets late in the day.
London November feed wheat closed up GBP1.75 at GBP124.00/tonne, whilst Paris May milling wheat was EUR1.50 higher at EUR142.00/tonne.
US wheat futures were sharply higher late in the session, which added support despite a weaker US dollar.
Severe planting disruptions to US spring wheat in North Dakota, which accounts for almost half of all US spring wheat production, are seen as supportive.
Talk of dryness issues in Russia and Ukraine potentially affecting winter wheat yields there was also bullish for wheat.
In the EU France, Germany and the UK have all had a much drier than normal last three months. Although rains have been fairly widespread this past few days, much more is needed to get back to normal precipitation levels for this time of year.
EU farmers remain reluctant sellers at current levels, preferring to adopt a wait and see attitude. With the existing premiums to be had for new crop over old crop who can blame them?
London November feed wheat closed up GBP1.75 at GBP124.00/tonne, whilst Paris May milling wheat was EUR1.50 higher at EUR142.00/tonne.
US wheat futures were sharply higher late in the session, which added support despite a weaker US dollar.
Severe planting disruptions to US spring wheat in North Dakota, which accounts for almost half of all US spring wheat production, are seen as supportive.
Talk of dryness issues in Russia and Ukraine potentially affecting winter wheat yields there was also bullish for wheat.
In the EU France, Germany and the UK have all had a much drier than normal last three months. Although rains have been fairly widespread this past few days, much more is needed to get back to normal precipitation levels for this time of year.
EU farmers remain reluctant sellers at current levels, preferring to adopt a wait and see attitude. With the existing premiums to be had for new crop over old crop who can blame them?
