EU Wheat Renews Downwards Tack

EU wheat futures renewed their downwards tack Wednesday with London Mar wheat ending down GBP0.40 at GBP94.15/tonne, and Paris Mar wheat closing EUR0.50 lower at EUR125.00/tonne.

A weaker dollar and lower US prices set the tone, with Paris wheat closing right on the psychologically important EUR125/tonne mark. A break through that tomorrow could be very significant.

All the grain market optimism that was around yesterday seemed to quickly evaporate today.

The pound was firmer early on after it was revealed that the BOE's MPC voted unanimously not to extend QE expenditure earlier this month. Unfortunately, or not as the case may be, the latest job claim numbers took some of the shine off sterling's strength later in the day.

Farmer selling remains light at these levels, although consumers are hardly falling over themselves to buy volume at the moment either.

There are a few bits of export business going on, but nothing significant, and very little coming the was of UK wheat that is for sure.

Latest customs data shows that whilst we have only exported 44% of Defra's projected volume for the current marketing year, halfway through the programme, we have actually imported 76% of our supposed requirements for the entire year.

That's hardly bullish information.