EU Wheat Ends Lower Again

EU wheat futures closed lower yet again Tuesday, extending their decline with November Paris milling wheat ending down EUR0.75 at EUR123.00/tonne, and London November feed wheat closing down GBP1.20 at GBP93.00/tonne.

It seems like it's a one-way street to oblivion, and it's pretty difficult to see what is going to change things at the moment.

Sharply lower plantings for the 2010 crop might help, but it's quite difficult to imagine that happening right at this moment in time.

From a growers point of view, after an all to brief period of fund-driven euphoria, everything has got right back to where it started.

The French Ministry increased their production estimate today for soft wheat to 37.2 MMT, that tops 2008 output despite a lower planted area.

That scenario is being replicated across much of the northern hemisphere, everywhere you look production is increasing on what was expected earlier in the season.

Unless winter sowings are sharply reduced, which seems unlikely, it's going to take an international disaster to turn this market around.