London Wheat Futures Close Modestly Higher Tuesday
London wheat futures closed higher for the first session in the last eight Tuesday in a correction from the sharp drop witnessed over the last couple of weeks.
Ideas that things had been overdone to the upside were substantially corrected by a 12-14% decline in EU futures since the start of the month.
Paris November milling wheat closed down EUR0.50 at EUR145.50/tonne, and London November feed wheat ended up GBP0.50 at EUR118.00/tonne.
The trade is now starting to focus on northern hemisphere harvest prospects developing over the next few weeks.
The signs are mostly encouraging, or so the trade would have you believe, European prospects are great, so too are those in the US, Russia and the FSU.
Meanwhile, global demand is shrinking by the minute, and there is absolutely nothing to get bullish about. They say.
There's plenty to go round, stocks are enormous, nobody wants the stuff, the only way is down. Don't worry about Argentina, that's already factored in. There is no threat to Australian production this year, that El Nino stuff is all a load of rubbish.
Yes, the largest exporting nations are almost all potentially looking at sharply lower production in 2009/10, but Egyptian consumption is seen down a million tonnes, so what is there to worry about?
Ideas that things had been overdone to the upside were substantially corrected by a 12-14% decline in EU futures since the start of the month.
Paris November milling wheat closed down EUR0.50 at EUR145.50/tonne, and London November feed wheat ended up GBP0.50 at EUR118.00/tonne.
The trade is now starting to focus on northern hemisphere harvest prospects developing over the next few weeks.
The signs are mostly encouraging, or so the trade would have you believe, European prospects are great, so too are those in the US, Russia and the FSU.
Meanwhile, global demand is shrinking by the minute, and there is absolutely nothing to get bullish about. They say.
There's plenty to go round, stocks are enormous, nobody wants the stuff, the only way is down. Don't worry about Argentina, that's already factored in. There is no threat to Australian production this year, that El Nino stuff is all a load of rubbish.
Yes, the largest exporting nations are almost all potentially looking at sharply lower production in 2009/10, but Egyptian consumption is seen down a million tonnes, so what is there to worry about?
