EU Wheat Closing Comments
EU wheat drifted lower again Thursday with January Paris milling wheat futures ending down EUR1.00 at EUR128.00/tonne, and London January feed wheat trading down GBP0.60 at GBP104.00/tonne.
Strategie Grains say that EU corn production will rise to 57.7 MMT in 2010 from 56.0 MMT this year. Meanwhile soft wheat production will increase by 3% to 133 MMT they say, that's at the expense of barley output which is seen down 6% to 58.7 MMT.
They are probably on the low side for EU wheat production. They peg UK wheat output at 1.9 MMT more than in 2009, that's around 13% up. OK, I know we've got Ensus and maybe Vivergo starting up, but I just don't see it working.
UK YTD wheat exports are only 582,380 MT, well below the 1.18 MMT exported at this point in 2008/09. There is far too much reliance being placed on the biofuel industry bailing out the UK wheat longs in my opinion.
Strategie Grains say that EU corn production will rise to 57.7 MMT in 2010 from 56.0 MMT this year. Meanwhile soft wheat production will increase by 3% to 133 MMT they say, that's at the expense of barley output which is seen down 6% to 58.7 MMT.
They are probably on the low side for EU wheat production. They peg UK wheat output at 1.9 MMT more than in 2009, that's around 13% up. OK, I know we've got Ensus and maybe Vivergo starting up, but I just don't see it working.
UK YTD wheat exports are only 582,380 MT, well below the 1.18 MMT exported at this point in 2008/09. There is far too much reliance being placed on the biofuel industry bailing out the UK wheat longs in my opinion.
