EU Wheat Futures Continue Decline

EU wheat futures continued their decline Wednesday, with November Paris milling wheat breaking through a key support level of EUR140/tonne on harvest pressure.

Combines are rolling is the east, with the wheat harvest in Ukraine already around halfway.

Although yields are coming in significantly lower than last year across Russia, the FSU and eastern European countries harvest pressure is still evident.

Talk that the CFTC are set to clip large spec funds wings with regards to their activities in the CBOT wheat pit has got the US market on the defensive again, with US wheat futures around 5 cents lower.

Egypt and Russia are back in love again, bless, GASC buying 60,000 MT of Russian wheat yesterday.

Persistent wet weather across large parts of the UK, northern France, Germany and into Poland are frustrating many farmers' best efforts to make any advancements with their own harvest. This is also giving rise to a few quality concerns, although it is still early days, which may support milling wheat a little relative to feed wheat.

London November feed wheat is currently down GBP2.25 at GBP107.50/tonne, with Paris November milling wheat EUR1.50 lower at EUR139.00/tonne.