EU Wheat Ends Lower Again

EU wheat futures closed lower again Friday with Paris March milling wheat ending down EUR1.25 at EUR127.25/tonne, and London March feed wheat closing down GBP1.70 at GBP104.00/tonne.

It's been a torrid week for wheat, with March London ending GBP5.20/tonne lower than last Monday's close, after the USDA issued some pretty damning numbers on Tuesday.

As the trade slowly comes to terms with the size of US and global stocks, there has been precious little in the way of demand news to help buoy the market.

Defra increased their estimate on the size of the 2009 UK wheat crop by 200,000 MT to 14.4 MMT this week. Egypt passed on US and French wheat in their latest tender, buying Russian/Kazakh grain, and a GASC visitation to France to try and reach some common ground re new strict importation regulations appeared to end in stalemate.

Sterling strength, or more accurately dollar and euro weakness, added to the woes of London wheat sending futures prices to their lowest levels since early October.