EU Wheat Edges Lower

EU wheat futures edged lower Wednesday in quiet trade with London January feed wheat ending GBP0.55 lower at GBP107.50/tonne, and Paris January milling wheat down EUR0.75 at EUR131.50/tonne.

EU wheat is giving all the signs of having packed up and gone home for the Christmas holidays already.

At this very early stage in the game the outlook for 2010 wheat prospects look pretty good, crop conditions in Ukraine have improved significantly over the last few moths. UkrArgroConsult say that, after an early scare, 85% of the country's grain crops are now in good to fair condition.

In the UK, things look markedly better than they did twelve months ago, and wheat plantings for next season are seen up about 10%, to around 2 million hectares.

That potentially gives us a crop of around 16.0-16.5 MMT next season, up 2.0-2.5 MMT on this year, and more than enough to cope with any extra demand from the likes of Ensus.

Even IF Vivergo starts up on time, and that is a mighty IF, then we would still be in a similar supply/demand situation for 2010/11 as is currently the case.

I'm getting the word SELL!

Now I fully realise that some of my regulars might not like this concept, but I don't ever recall issuing the recommendation: PLANT! either.

Check out what my Uncle Alf had to say back in September: here