EU Wheat Ends Unchanged To Lower On Currency

EU wheat futures closed unchanged to mostly lower Thursday, pressured yet again by a sharply weaker US dollar.

November Paris milling wheat closed unchanged at EUR151.50/tonne, whilst November Paris milling wheat closed down GBP1.15 at GBP121.60/tonne.

The markets have fallen substantially this week, with London November feed wheat down GBP8.65/tonne already since last Friday's close.

Yesterday's USDA report was bearish on wheat, particularly for new crop, although plenty of potentially bullish factors remain yet to be factored into this market. For example, the USDA pegged 2009/10 Argentine wheat production at 11 MMT, despite the fact that plantings are seen down at least 30% this year from a crop that only yielded 8.3 MMT in 2008/09.

There are still major problems in Eastern Europe over wheat production this year, but it may take another month or two, once early harvest reports filter through, for the extent of potential crop losses to become apparent.