EU Wheat Closes Lower On Corrective Move

EU wheat futures closed lower Tuesday in a corrective move from recent gains. Paris November milling wheat closed down EUR1.00, at EUR137.00/tonne, and London November feed wheat traded down GBP0.25 at GBP104.00/tonne.

A lower close was not entirely unlexpected after futures rebounded somewhat from the last few sessions. The dollar was aharply lower, with sterling particularly steady after promising figures from Barclays and HSBC boosted the pound.

The pound bobbed above $1.70 for the first time since October on a wave of enthusiasm for risk.

Although the EU wheat harvest continues to be dogged by bad weather ideas are that yields will be fine even if quality is damaged.

In the US things are pretty similar, spring wheat harvesting is well behind schedule and crops are largely looking great, although proteins are expected to be below normal.