EU Wheat Ends Higher On Sterling, UK Forecasts
EU wheat futures closed higher Friday, with London leading the way boosted by a weak sterling and lower than anticipated production and acreage estimates from the NFU and Defra.
Paris November milling wheat traded up EUR1.25 at EUR121.25/tonne, whilst London November feed wheat closed GBP2.50 higher GBP97.50/tonne.
UK wheat was particularly supported by a weak pound and forecasts from the NFU of an English wheat crop this year of only 12.9 MMT.
Acreage figures from Defra yesterday pointed to a uK wheat crop this season of around 14 MMT, 3.5 MMT less than last year.
A combination of reduced plantings, a very wet autumn, dry spring and persistent rains throughout the latter end of the growing season appear to have combined to bring yields in much lower than 2008.
Perversely, quality is expected to be better than last year, despite the difficult growing season.
The euro rose to a twelve month high against the dollar this week which will keep any Paris gains in check. A weak pound however won't do any harm to UK prices, although this season's sharply lower output means that we won't be so heavily dependant on exports as last year.
Paris November milling wheat traded up EUR1.25 at EUR121.25/tonne, whilst London November feed wheat closed GBP2.50 higher GBP97.50/tonne.
UK wheat was particularly supported by a weak pound and forecasts from the NFU of an English wheat crop this year of only 12.9 MMT.
Acreage figures from Defra yesterday pointed to a uK wheat crop this season of around 14 MMT, 3.5 MMT less than last year.
A combination of reduced plantings, a very wet autumn, dry spring and persistent rains throughout the latter end of the growing season appear to have combined to bring yields in much lower than 2008.
Perversely, quality is expected to be better than last year, despite the difficult growing season.
The euro rose to a twelve month high against the dollar this week which will keep any Paris gains in check. A weak pound however won't do any harm to UK prices, although this season's sharply lower output means that we won't be so heavily dependant on exports as last year.
