EU Wheat Ends Mostly Lower
EU wheat futures closed mostly lower Thursday with May London feed wheat ending down GBP0.40 at GBP94.50/tonne, and May Paris milling wheat finishing EUR1 lower at EUR125.25/tonne.
The IGC upped their 2009/10 world wheat production estimate by 1 MMT to 675 MMT, just to add to the bearish pressure on wheat.
High global stocks and slack demand continue to weigh on prices.
In the UK, the start up of the Ensus bioethanol plant on Teesside continues to be a frustratingly stop start affair.
Reluctance to sell at current levels remains just about the only weapon left in the farmer's arsenal, but with offtake of old crop stocks continuing to be sluggish, consumers are in no hurry to buy.
If we are going to see a significant rally in values then we need some sort of fundamental change in the dynamics of the wheat market. This sadly doesn't look too likely in 2010.
The IGC upped their 2009/10 world wheat production estimate by 1 MMT to 675 MMT, just to add to the bearish pressure on wheat.
High global stocks and slack demand continue to weigh on prices.
In the UK, the start up of the Ensus bioethanol plant on Teesside continues to be a frustratingly stop start affair.
Reluctance to sell at current levels remains just about the only weapon left in the farmer's arsenal, but with offtake of old crop stocks continuing to be sluggish, consumers are in no hurry to buy.
If we are going to see a significant rally in values then we need some sort of fundamental change in the dynamics of the wheat market. This sadly doesn't look too likely in 2010.
