EU Wheat Ends Higher
EU wheat futures closed higher Thursday with November Paris milling wheat ending up EUR1.75 at EUR123.75/tonne and London November feed wheat closing up GBP2.00 at GBP99.00/tonne.
Today was probably more about currency than anything else. The pound had another bad day at the office which propelled London wheat higher, flushing out one or two shorts.
Comments by BOE Governor Mervyn King that the pound's recent fall against the euro was 'helpful' - and that RBS and HBOS came within a day of failing at the height of the banking crisis twelve months ago, certainly put sterling under pressure.
Defra said that the UK wheat area came in a whisker under 1.8 million hectares, which implies a crop of 14 MMT this season, was also supportive.
Farmers simply don't want to sell at current levels, and are currently busy appraising their planting intentions for 2010.
More OSR seedings might be on the cards it would seem. Rotation-wise it makes sense, and OSR prices haven't fallen quite so far from their highs as wheat.
Today was probably more about currency than anything else. The pound had another bad day at the office which propelled London wheat higher, flushing out one or two shorts.
Comments by BOE Governor Mervyn King that the pound's recent fall against the euro was 'helpful' - and that RBS and HBOS came within a day of failing at the height of the banking crisis twelve months ago, certainly put sterling under pressure.
Defra said that the UK wheat area came in a whisker under 1.8 million hectares, which implies a crop of 14 MMT this season, was also supportive.
Farmers simply don't want to sell at current levels, and are currently busy appraising their planting intentions for 2010.
More OSR seedings might be on the cards it would seem. Rotation-wise it makes sense, and OSR prices haven't fallen quite so far from their highs as wheat.
