EU Wheat Closing Comments

EU wheat closed mixed, with May London wheat ending GBP0.15/tonne higher at GBP97.40/tonne, and Paris May wheat closing EUR0.25/tonne lower at EUR126.75/tonne.

It was another subdued day, with the market treading water until we get some clear indication of which way prices might move from here on in.

The bears clearly have plenty of downwards impetus on their side at the moment. All the bulls have pretty much is their lack of enthusiasm to sell.

With EU prices finally seeming to have reached a level at which most of the world is interested, then maybe that has put a floor under prices for the time being.

Apart from that there is very little reason to get too excited at the moment. Despite low prices, everybody seems to be resigned to growing more of the stuff for 2010/11.

Even in Australia, where growers have been hurt more than most, the country's largest farmer said: "You can't stop. We are in the business of growing grain and I think a lot of people will be hoping that by the time we harvest, prices have risen."