EU Wheat Ends Sharply Lower Wednesday

EU wheat futures closed sharply lower Wednesday in a corrective move from recent steep gains, and weaker outside markets.

London wheat had rallied around GBP15/tonne since mid-April, and it seems that it was time to bank a few profits.

Prices continued to rally late last week and into Monday, despite the pound and euro firming considerably against he dollar, which maybe got the markets a little out of sync.

Crude oil was sharply lower today, which also spilled over into the grains sector, as did falling equities.

Still, if farmers didn't want to sell today, they aren't going to want to sell tomorrow with November Paris milling wheat ending down EUR6.00 at EUR157.00/tonne, and London November feed wheat closing GBP4.25 lower at GBP128.50/tonne.

Sharply weaker US wheat futures late in the day pressured EU wheat to close at or near session lows.

US wheat had a bad day at the office, after moving up around 20% during May a bit of profit-taking was also overdue.

Still, weather problems in Canada, the northern US Plains and Argentina, to name but a few, point to potential crop losses down the road for wheat.