EU Wheat Ends Marginally Higher

EU wheat futures started the week closing marginally higher with November Paris milling wheat closing up EUR0.25 at EUR123.25/tonne, and London November feed wheat ending up GBP0.10 at GBP98.60/tonne.

Rolling forward of November longs into January was a feature. Traders still report that farmer retention remains strong, despite recent price rises.

Growers are busying themselves with winter drilling, and increased wheat and rapeseed plantings look to be on the cards at the expense of barley.

Most pundits are projecting the UK wheat area rising from 1.8 million hectares to around 2 million for the 2010 harvest. Similarly the UK OSR area is seen growing from 571,700 ha to "at least 600,000 ha," according to ADAS.

A very dry September is a concern for UK and many EU producers, as newly planted OSR (and in some cases wheat) has not got off to a very good start. In the UK most of the country is expected to get a fairly good soaking Tuesday. The first for more than a month in many parts, after large parts of the UK got only a fifth of normal rainfall during September.