EU Wheat Closing Comments

EU wheat futures closed with London mostly higher and Paris generally unchanged. March London wheat ended GBP1.25 higher at GBP93.50/tonne, whilst March Paris wheat was unchanged at EUR121.75/tonne.

The pound and euro both lost around 0.75% against the dollar today, which steadied the sinking ship somewhat.

Even though US wheat is generally uncompetitive to the export markets that European wheat is looking at anyway, other origins are of course also priced in dollars.

The supply and demand fundamentals are still stacked heavily against the world's wheat growers for the time being, with every export order being fiercely fought over.

Iraq are shopping for wheat this next few weeks, having bought Russian and Canadian grain in their most recent tender.

North Dakota farmers are suffering from deja vu, with heavy flooding likely to hit Red River area for the second year in a row. The state is easily the largest producer of spring wheat in the US.

Further south, increased rains over the past couple of weeks have improved winter wheat prospects in the top producing state of Kansas.