EU Wheat Continues To Slip

EU wheat futures continued to slip lower Monday, further extending recent losses on increasing crop production worldwide and slack demand.

November Paris milling wheat closed down EUR0.75 at EUR119.25/tonne, and London November feed wheat ended down GBP0.50 at GBP91.75/tonne.

Friday's global production increases, and further additions to ending stocks forecasts from the USDA weighed on prices, with Paris closing below the psychologically important EUR120/tonne level.

With prices stuck in a seemingly uninterrupted downwards decline since the start of June there is little to encourage buyers back to the market.

Sellers meanwhile continue to deploy one of the few weapons left in their armoury, don't sell. Will they play the other one of "don't plant"?

It seems like they might in some parts of eastern Europe, due to lack of credit considerations, but whether this will be enough to turn this market around is questionable.