EU Grains Closing Comments

EU wheat closed mixed Thursday with Paris November milling wheat down EUR1.25 at EUR140/tonne and London November feed wheat up GBP0.25 at GBP105.75/tonne.

It was a quiet session with many places around Europe off on holiday for Ascension Day, which will likely mean a subdued Friday session too.

UK wheat was supported by the ailing pound, which fell to around 1.47 against the dollar, as the UK trade deficit widened and the enormity of the task facing the new coalition government became even more apparent.

Strategie Grains cut their estimate for EU soft wheat production by 1.2 MMT to 133 MMT. EU-27 All wheat output they see at 141.4 MMT, 3.7 MMT less than the USDA predicted on Tuesday.

German soft wheat production was cut 800,000 MT and French soft wheat output was reduced by 500,000 MT. Scandinavia, Poland and the Baltic countries also had their estimates cut, although this was offset by increases in production in eastern Europe.

The recent spell of cold and dry weather is finally forecast to come to an end as winds shift to westerlies. As well as warming things up low pressure will also bring some much needed rain.