EU Wheat Futures End Flat After Recent Steep Declines

EU wheat futures closed flat Tuesday, as prices arrested the very steep declines seen already during June.

November Paris milling wheat closed up EUR1.00 at EUR143.25/tonne, and London November feed wheat ended unchanged at GBP114.50/tonne.

The July London wheat future hit a recent high of GBP124/tonne on 1st June, but has fallen as much as GBP24/tonne since then, before closing slightly off those lows at GBP101.50/tonne today.

During the same period the November Paris future has dropped EUR24/tonne, from a high of EUR165.20/tonne to yesterday's low of EUR141.20/tonne.

Plentiful old crop stocks are still around, DEFRA's forecast of the UK exporting 3.7 MMT in 2008/09 looks unlikely to be reached, which means maybe we will take an extra 2-300,000 MT of carryover into next season.

The northern hemisphere harvest is either underway, or shortly will be, so it should be no great surprise that prices are depressed.

We might as well kill ourselves, right?

Erm, you could always try not selling wheat if it's below the cost of production. The market is all about supply & demand, so don't supply the bloody stuff, what is there to lose?

If they want it, they will come! More on this theme tomorrow.