EU Wheat Slide Continues
EU wheat futures continued their sharp corrective slide unabated Monday with Paris November milling wheat ending down EUR1.75 at EUR146.00/tonne, and London November feed wheat closing down GBP1.25 at GBP117.50/tonne.
In London, the November future has lost GBP17.50/tonne since the start of June, whilst in Paris November milling wheat has fallen EUR19.20/tonne.
With such steep price falls in evidence in such a short period farmers are shell-shocked, but largely remain reluctant sellers, at least until there is more certainty over the size of EU and world crops over the next couple of months.
In London prices have now given up all the gains made in April and May and are back at early April lows. In Paris prices are within EUR5-7 of the early April lows.
Maybe that isn't such a bad thing, if the spec money has got it's fingers burnt again so soon after it finally regained confidence in ag commodities, perhaps we can soon get back to trading the fundamentals.
The fundamentals, such as they are, aren't as bearish as some would have you believe. All the major exporting nations are looking at sharply reduced production in 2009, with the possible exception of Australia, and it is way too early to say what sort of crop they are going to have yet.
In London, the November future has lost GBP17.50/tonne since the start of June, whilst in Paris November milling wheat has fallen EUR19.20/tonne.
With such steep price falls in evidence in such a short period farmers are shell-shocked, but largely remain reluctant sellers, at least until there is more certainty over the size of EU and world crops over the next couple of months.
In London prices have now given up all the gains made in April and May and are back at early April lows. In Paris prices are within EUR5-7 of the early April lows.
Maybe that isn't such a bad thing, if the spec money has got it's fingers burnt again so soon after it finally regained confidence in ag commodities, perhaps we can soon get back to trading the fundamentals.
The fundamentals, such as they are, aren't as bearish as some would have you believe. All the major exporting nations are looking at sharply reduced production in 2009, with the possible exception of Australia, and it is way too early to say what sort of crop they are going to have yet.
