EU Wheat Ends Nervously Higher

EU wheat futures closed nervously higher with November Paris milling wheat trading up EUR0.25 at EUR131.50/tonne, and London November feed wheat closing up GBP0.50 at GBP98.10/tonne.

Buyers are generally reluctant and in no hurry to put fresh purchases on the books, with the downwards trend very much in their favour.

French analysts Strategie Grains said that this year's EU-27 cereal harvest will come in at 289 MMT, that's 6 MMT higher than their July estimate, although still 7% lower than last year's bumper harvest.

Soft wheat production will now be 130 MMT they say, that's 3.5 MMT more than their July estimate of 126.5 MMT, and is the result of better than expected yields, particularly in France and Germany.

They estimate that 70% of the EU-27 wheat crop had been cut as of Aug. 6, and predict that 69% of this season's crop will make milling standard.

Barley production was raised 1.3 MMT to 60.7 MMT, again largely due to better than expected yields from French and German producers, where output was raised 600,000 MT and 300,000 MT respectively.