EU Wheat Ends Lower
EU wheat closes Tuesday with Jan London feed wheat GBP1.25 lower at GBP105.50/tonne, and Jan Paris milling wheat down EUR1.00 at EUR128.75/tonne.
By recent standards things were quite active with London wheat trading over 600 lots and more than 10,000 lots of Paris wheat changing hands.
Certainly much of the London business looks like it was probably the rolling over of positions from January into March.
For all the talk that there is no demand, my spies tell me that the A19 was full of merchant's wheat lorries en-route to Ensus today. It seems like somebody is going to be pressing the big red button fairly soon, maybe they've got Mylene Klass booked? There's a joke in there regarding the releasing of my balls, but I won't attempt to find it.
Farmers generally seem like they don't want to sell, at least not this side of the New Year. Are they doing the right thing? Only time will tell.
It is worth considering that every arable farmer in the country (including those in Devon & Kent) seem to be thinking that Ensus will emerge as a forced buyer, pushing the domestic wheat market higher.
Simultaneously, every compounder/dairy farmer in the land reckons that they will also become a forced seller of DDGS.
So they will end up paying through the nose for their raw material, whilst selling their by-product at a knock-down price.
It could happen, but I don't think so somehow, the latter is far, far, more likely to be true than the former in my humble opinion.
By recent standards things were quite active with London wheat trading over 600 lots and more than 10,000 lots of Paris wheat changing hands.
Certainly much of the London business looks like it was probably the rolling over of positions from January into March.
For all the talk that there is no demand, my spies tell me that the A19 was full of merchant's wheat lorries en-route to Ensus today. It seems like somebody is going to be pressing the big red button fairly soon, maybe they've got Mylene Klass booked? There's a joke in there regarding the releasing of my balls, but I won't attempt to find it.
Farmers generally seem like they don't want to sell, at least not this side of the New Year. Are they doing the right thing? Only time will tell.
It is worth considering that every arable farmer in the country (including those in Devon & Kent) seem to be thinking that Ensus will emerge as a forced buyer, pushing the domestic wheat market higher.
Simultaneously, every compounder/dairy farmer in the land reckons that they will also become a forced seller of DDGS.
So they will end up paying through the nose for their raw material, whilst selling their by-product at a knock-down price.
It could happen, but I don't think so somehow, the latter is far, far, more likely to be true than the former in my humble opinion.
