EU Wheat Ends Higher
EU wheat futures closed higher Thursday with November Paris milling wheat closing up EUR2.00 at EUR124.50/tonne, and London November feed wheat trading up GBP0.75 at GBP98.25/tonne.
London wheat was aided by a weaker sterling, following news that the manufacturing purchasing managers' index (PMI) fell to 49.5 last month from 49.7 in August.
The trade remains in a general state of flux as both buyers and sellers seem content to stand aside. EU growers are now faced with the conundrum of what to plant for next season. It seems that whilst western Europe may be content to give unprofitable wheat one more chance, in eastern Europe farmers may not have that luxury.
Tight credit and unseasonably warm and dry weather may be forcing a few hands it would seem. Having said that I wouldn't go getting carried away with the idea that wheat prospects will be looking a whole lot brighter in 2010.
If the wheat market is going to move significantly to the upside then I think we need to see a serious production problem somewhere like India over the next few months.
London wheat was aided by a weaker sterling, following news that the manufacturing purchasing managers' index (PMI) fell to 49.5 last month from 49.7 in August.
The trade remains in a general state of flux as both buyers and sellers seem content to stand aside. EU growers are now faced with the conundrum of what to plant for next season. It seems that whilst western Europe may be content to give unprofitable wheat one more chance, in eastern Europe farmers may not have that luxury.
Tight credit and unseasonably warm and dry weather may be forcing a few hands it would seem. Having said that I wouldn't go getting carried away with the idea that wheat prospects will be looking a whole lot brighter in 2010.
If the wheat market is going to move significantly to the upside then I think we need to see a serious production problem somewhere like India over the next few months.
