EU Wheat Closing Comments
EU wheat futures closed mixed with a weak pound helping London close flat to a tad higher, whilst Paris was slightly lower.
November Paris milling wheat closed down EUR0.75 at EUR123.00/tonne. London November feed wheat finished up GBP0.25 at GBP98.50/tonne.
It's the same old stand-off, with end-users expecting lower prices round the corner once farmers have finished sowing winter crops.
Canada became the latest in a long line of countries to confirm that this season's wheat crop might be down on last season, but it is significantly higher than what was expected a month or two back.
All wheat output will total 24.58 MMT this season said Stats Canada, almost 1 MMT higher than their September estimate.
The news comes just a few days after the USDA also raised US production earlier in the week.
Still, it's not all doom and gloom. Rabobank predict that the EU will seize on low grain prices and increased ethanol levels to increase grain usage in biofuel production by 61% to 9 MMT in 2009/10.
Falling corn prices in the US will also see a corresponding increase in corn usage by the ethanol industry this year, they add.
November Paris milling wheat closed down EUR0.75 at EUR123.00/tonne. London November feed wheat finished up GBP0.25 at GBP98.50/tonne.
It's the same old stand-off, with end-users expecting lower prices round the corner once farmers have finished sowing winter crops.
Canada became the latest in a long line of countries to confirm that this season's wheat crop might be down on last season, but it is significantly higher than what was expected a month or two back.
All wheat output will total 24.58 MMT this season said Stats Canada, almost 1 MMT higher than their September estimate.
The news comes just a few days after the USDA also raised US production earlier in the week.
Still, it's not all doom and gloom. Rabobank predict that the EU will seize on low grain prices and increased ethanol levels to increase grain usage in biofuel production by 61% to 9 MMT in 2009/10.
Falling corn prices in the US will also see a corresponding increase in corn usage by the ethanol industry this year, they add.
