EU Wheat Closing Comments

EU wheat closed mixed, with London mostly higher and Paris lower. May London feed wheat ended up GBP0.45 at GBP96.90/tonne, May Paris milling wheat closed down EUR1 at EUR125.75/tonne.

A strong dollar helped prevent EU wheat from declining too much, although gains against both sterling and the euro were broadly similar.

Reports that French exporters are "clearing the decks" in anticipation of another bumper wheat harvest this summer may not entirely be a bad thing.

The French are apparently picking up sales to all sorts of exotic destinations like Peru, Venezuela, Thailand and Brazil according to various media reports.

That won't do any harm in the long run, and for EU wheat to be able to travel to such far flung exotic destinations indicates that, maybe, prices here can't and don't need to fall much lower than they are already.

If the cure for high prices is high prices, then maybe the cure for low prices is also low prices.

Don't get me wrong, I'm not coming all over massively bullish on wheat, but I think that maybe a modest period of price consolidation is in order.