EU Wheat Closing Comments

March Paris milling wheat futures closed Thursday's session down EUR0.25 at EUR134.00/tonne and London March feed wheat futures ended down GBP0.65 at GBP109.45/tonne.

It was another largely unspectacular day with little more than 100 lots traded in London all day.

The widely touted fund buying that was supposed to be in evidence early in January has largely failed to emerge, and that was just about the only thing likely to support these markets.

Mother Nature is doing her bit to help, with a severe cold spell more or less across the entire northern hemisphere, but if it wasn't for that I think we'd see prices falling out of bed big-time.

The flip side of the cold snap currently gripping the UK is that it is also holding back the opening of the Ensus bioethanol refinery on Teesside.

Judging by some of the emails and telephone calls I've been having from assorted farming operations around the UK, many are coming to the same conclusion. They might not be overly keen on current levels, but they are a darn sight better than what was on offer back in September.

New crop wheat is now in the ground, and there doesn't seem to be any liklihood that there will be a shortage in 2010/11.

Around 200,000 extra hectares of winter wheat has been planted in the UK, according to Masstock. That will likely produce a wheat crop of around 16 MMT, around 1.8 MMT more, or 13% up on last year.