EU Wheat Resumes Downwards Path

After one day of brief respite, EU wheat futures continued their downwards slide Friday closing lower for the eighth session out of the last nine. London March feed wheat ended down GBP0.65 at GBP100.85/tonne, with Paris March milling wheat down EUR0.75 at EUR126.50/tonne.

The International Grains Council increased their global wheat production estimate for 2009/10 from 668 MMT to 674 MMT. They also raised world ending stocks from their previous estimate of 191 MMT to 197 MMT, a 32 MMT (or 19%) increase on 2008/09.

In addition they added 8 MMT to their forecast for world wheat production in the coming 2010/11 season, pegging output at 653 MMT, the third highest on record.

The report comes hot on the heels of a Strategie Grains release yesterday, pegging EU soft wheat output up 3% to 133.7 MMT in the coming season, aided by better yields.

Despite increasing human & industrial use, Strategie Grains see next season's EU ending stocks almost 24% higher at 22.4 MMT, up by 4.3 MMT.

November London feed wheat has now fallen by GBP8.20/tonne, or more than 7%, in the three weeks since the end of 2009. November Paris milling wheat is down EUR6.50 (5%) and December CBOT wheat down 38c, or nearly 6%, in the same time frame.