EU Wheat Closing Comments
EU wheat closed higher, following the US market once again with November London feed wheat ending up GBP2.25 at GBP102.75/tonne and Paris November milling wheat EUR2.25 higher at EUR129.75/tonne.
Wheat gained from strong outside markets like crude oil and equities. Crude popped up back above USD80/barrel, around USD2.50 firmer on the day, and Wall Street came in strong, before finally closing just shy of 200 points higher.
The International Grains Council raised their forecast for global wheat production in 2009/10 by 1 MMT, but also said that plantings for next season's crop would fall, particularly in the US, on a combination of low prices and a delayed soybean and corn harvest.
Indian wheat futures closed at contract highs, close to USD300/tonne, as private stocks dwindle and the government play hardball over the release of state-owned stocks at reasonable levels.
The US came out of recession, leaving Britain as the only major economy still officially mired in one, as Q3 GDP expanded by 0.9%. All this talk of growth and better times ahead seems to be encouraging investment funds back into commodities, especially with interest rates at record lows.
That doesn't mean that the wheat supply and demand fundamentals have changed though, warn the sceptics. Sellers are however few and far between at current levels, and if you need wheat tomorrow then you have to pay up.
Wheat gained from strong outside markets like crude oil and equities. Crude popped up back above USD80/barrel, around USD2.50 firmer on the day, and Wall Street came in strong, before finally closing just shy of 200 points higher.
The International Grains Council raised their forecast for global wheat production in 2009/10 by 1 MMT, but also said that plantings for next season's crop would fall, particularly in the US, on a combination of low prices and a delayed soybean and corn harvest.
Indian wheat futures closed at contract highs, close to USD300/tonne, as private stocks dwindle and the government play hardball over the release of state-owned stocks at reasonable levels.
The US came out of recession, leaving Britain as the only major economy still officially mired in one, as Q3 GDP expanded by 0.9%. All this talk of growth and better times ahead seems to be encouraging investment funds back into commodities, especially with interest rates at record lows.
That doesn't mean that the wheat supply and demand fundamentals have changed though, warn the sceptics. Sellers are however few and far between at current levels, and if you need wheat tomorrow then you have to pay up.
