EU Wheat Closing Comments

Paris March milling wheat futures closed Tuesday unchanged at EUR133.75/tonne, and London March feed wheat ended GBP0.55 higher at GBP108.85/tonne.

As was widely expected it was a quiet, uneventful day in what promises to be a subdued week's trade. Even a sharply higher close in US wheat futures last night failed to ignite much interest today.

The EU granted export licenses for 374,000 MT of soft wheat for the week ended Dec. 22, according to customs data. That brings total exports for the marketing year to date to 8.2 MMT, 25% down on the 11 MMT worth granted this time twelve months ago.

It still seems that wheat's best chance of pushing significantly higher in the new year rests with fund/spec money re-entering the market.

Russia remain the most aggressive seller in the market, and logistical problems caused by harsh wintry conditions might be Europe's best hope of picking up a few spare export orders over the next few months.