EU Wheat Closing Comments

EU wheat futures closed lower with Paris March milling wheat ending down EUR0.25 at EUR128.50/tonne, and London May feed wheat closing down GBP0.80 at GBP108.20/tonne.

It was another day of fallout from some very bearish USDA numbers released Tuesday.

German farmers have planted 3% more winter wheat for the 2010 harvest than they did for 2009, said the German Statistics Office. that's the largest area given over to wheat since German unification.

French wheat plantings are also up 3% to 4.89 million hectares say FranceAgriMer, whilst here in the UK farmers have reluctantly planted around 10% more of the crop, boosting sowings to around 2 million hectares.

Defra boosted the size of the UK 2009 wheat crop by 200,000 MT to 14.4 MMT today also.

As you can see we are struggling to find some bullish news here. Egypt passed on EU and US wheat to buy 180,000 MT of Russian/Kazakh wheat in yesterday's tender, and Jordan also joined the fray booking 100,000 MT of Black Sea origin wheat overnight.

Nope, there's no bullish news round here Mister. Rafa Benitez took one step closer to the sack by losing at home to Reading last night, but that probably won't make too much difference to the global wheat supply and demand balance sheet said one UK broker.

"Frontier are a gang of gay girls who can't fight their way out of a paper bag," added another, who surprisingly refused to be identified.