EU Wheat Futures Drift Lower

EU wheat futures continued to drift lower Tuesday with March London wheat closing GBP1.10 lower at GBP101.15/tonne, and Paris March wheat ending down EUR0.25 at EUR125.75/tonne.

There really isn't a huge amount of fresh news to impart, the fallout from last week's bearish USDA numbers is still hanging over the market a week later.

Export business remains scant, and what little interest is around doesn't seem to be going the way of EU wheat to any great extent.

A strong pound was again particularly bearish for London wheat, with unease over the situation in Greece weighing on the euro. Even the apparent reluctant agreement by Cadbury's to the Kraft takeover supported sterling, thereby weighing on wheat. It's funny what affects the wheat market these days.

Paris March wheat is now perilously close to contract lows set at harvest time in early September, when prices fell to EUR123.20/tonne. Even London March wheat is now in danger of falling into double digit territory if the current decline continues for the remainder of the week.

Reports emanating from the leading Senalia grain storage facility at the port of Rouen suggest that they are full and have again stopped taking further deliveries of grain.