EU Wheat Continues To Nudge Higher
EU wheat futures continued to nudge higher Thursday with Paris November milling wheat futures closing up EUR1.50 at EUR127.25/tonne, and London November feed wheat ending up GBP0.85 at GBP101.00/tonne.
London futures are now GBP10/tonne higher than their mid-September lows, largely on the back of a weak sterling and lack of producer selling.
It is interesting to note that many of the buyers being flushed out seem to be previously short sellers convinced that the market was going to go down forever.
Although many pundits are saying that tomorrow's USDA report will hold few surprises on the wheat front and that all the activity will come from corn & beans, I'm not quite so convinced.
I think that there is sufficient potential for the UDSA to raise global wheat production by at least 5 MMT, if not 7 MMT. So after the recent rally I think that it would be prudent to bank a few profits and make a couple of sales.
London futures are now GBP10/tonne higher than their mid-September lows, largely on the back of a weak sterling and lack of producer selling.
It is interesting to note that many of the buyers being flushed out seem to be previously short sellers convinced that the market was going to go down forever.
Although many pundits are saying that tomorrow's USDA report will hold few surprises on the wheat front and that all the activity will come from corn & beans, I'm not quite so convinced.
I think that there is sufficient potential for the UDSA to raise global wheat production by at least 5 MMT, if not 7 MMT. So after the recent rally I think that it would be prudent to bank a few profits and make a couple of sales.
