EU Wheat Closing Comments

EU wheat futures closed with November London feed wheat up GBP0.50/tonne at GBP105.65/tonne and with Paris January milling wheat down EUR0.50/tonne at EUR134.25/tonne.

Strength came from firmer outside markets once again, with gold hitting all-time highs and crude oil testing USD80/barrel, spillover strength entered the grains markets.

US wheat has also been propelled sharply higher in recent sessions, which also added some strength, although export interest still remains light.

Egypt's GASC are back in the market again this week, tendering for one or two cargoes of wheat. Last week they bought 295,000 MT of all Russian wheat, that is probably the most likely supplier again this week, although some reports of widespread bug damage to Black Sea grain are circulating the trade.

The thick end of 1 MMT of grain, almost all barley, was put up for entry into the EU's intervention scheme during the first week of November. Of that, Germany offered 276,089 MT and France 159,170 MT.

Wet weather and weak cash prices mean that US SRW wheat producers are expected to reduce plantings by 18% to 20% from last year.