EU Wheat Resumes Downwards Ways

EU wheat futures resumed their downwards ways Thursday, after an all too brief temporary respite, with Paris milling wheat closing down EUR1.75 at EUR119.50/tonne, and London November feed wheat closing down GBP0.75 at GBP92.50/tonne.

It was a relatively quiet session compared to yesterday, with volumes traded significantly lower, the number of contracts changing hands in London being around a fifth of yesterday's volume.

EU markets followed the US sharply higher yesterday on the back of a significant frost event in the forecasts for the US Midwest late next week. Today forecasters took much of that threat back out of projections, sending markets back into a slump.

Export markets remain very competitive, with Russia once again winning the majority of tenders kicking around at the moment. Still, the price fillip of the last few days does prove that shorts are still quite nervous.

Winter wheat planting is underway in the US, and early indications are that current prices are leaving growers scratching their heads a little. The cool summer and late developing corn and soybean crop may force a few hands, abandoning wheat planting ideas in favour of other later planted alternatives such as sorghum.