EU Wheat Mixed
EU wheat futures ended mixed, closing a low volume day with November Paris milling wheat up EUR0.25 at EUR126.50/tonne and London November feed wheat down GBP0.75 at GBP96.50/tonne.
The bears certainly have it at the moment with bullish news hard to come by. Egypt bought 330,000 MT of mixed French/US and Russian wheat yesterday, but the inclusion of at least some wheat from France hardly had any impact at all.
Although global wheat production is down on last year, output is still high at around 659 MMT this season. The northern hemisphere crop is largely in, and although yields are generally lower, quality is higher.
Very soon market attention will switch to southern hemisphere crops. In Argentina wheat plantings are the lowest for many years, in Australia the jury is still out on yields depending on El Nino.
But for now it appears that another large crop in Europe, the US and the FSU will weight on the market.
The bears certainly have it at the moment with bullish news hard to come by. Egypt bought 330,000 MT of mixed French/US and Russian wheat yesterday, but the inclusion of at least some wheat from France hardly had any impact at all.
Although global wheat production is down on last year, output is still high at around 659 MMT this season. The northern hemisphere crop is largely in, and although yields are generally lower, quality is higher.
Very soon market attention will switch to southern hemisphere crops. In Argentina wheat plantings are the lowest for many years, in Australia the jury is still out on yields depending on El Nino.
But for now it appears that another large crop in Europe, the US and the FSU will weight on the market.
