EU Wheat Ends Higher Despite Impending Harvest

EU wheat futures closed higher Monday, despite the impending wheat harvest. With futures having fallen 20% or more since the start of the month a technical correction was well overdue.

Paris November milling wheat futures closed up EUR2.25 at EUR143.75/tonne, and London November feed wheat ended up GBP1.75 at GBP115.50/tonne.

The USDA acreage report tomorrow maybe also encouraged some short sellers to book profits, although the wheat numbers are less likely to throw up a surprise than those for corn or soybeans.

Funds are heavily short US wheat however, leaving the market vulnerable to a corrective move.

In Germany the barley harvest got underway over the weekend, and in France wheat is expected to begin getting cut within the next week or so. Despite that though farmers are reluctant sellers at these levels, and there is still a large carry premium on offer.

Warm and dry weather across much of Europe may lead to some better quality wheat being around this coming season.