EU Wheat Closes Mostly Higher On Currencies
November London wheat ended up GBP1.15 at GBP106.25/tonne, November Paris wheat was EUR1 higher at EUR141.25/tonne.
A chronically weak euro (and to a lesser degree pound also) helped support EU wheat futures.
The pound slid to a fresh yearly low of 1.4255 against the dollar, whilst the euro broke below the 2008 low of 1.2328, falling to 1.2235 in early trade to set a four year low.
With little change to other wheat market fundamentals it's currency that is primarily driving the market at the moment.
Although there doesn't seem to be too much trade talk about it at the moment, there are possibly some concerns creeping in that many of the most productive parts of Europe might be in for at best only average yields this summer.
France, Germany and the UK have all suffered with a hard winter followed by a cold and largely dry spring. Conditions are said to be much better in Eastern Europe however, and as usual they will be first to aggressively market their new crop grain not too many weeks from now.
This will undoubtedly bring the usual harvest price pressure led by this contingent, so if you are hoping for significantly better prices you may have to wait until 2011.
A chronically weak euro (and to a lesser degree pound also) helped support EU wheat futures.
The pound slid to a fresh yearly low of 1.4255 against the dollar, whilst the euro broke below the 2008 low of 1.2328, falling to 1.2235 in early trade to set a four year low.
With little change to other wheat market fundamentals it's currency that is primarily driving the market at the moment.
Although there doesn't seem to be too much trade talk about it at the moment, there are possibly some concerns creeping in that many of the most productive parts of Europe might be in for at best only average yields this summer.
France, Germany and the UK have all suffered with a hard winter followed by a cold and largely dry spring. Conditions are said to be much better in Eastern Europe however, and as usual they will be first to aggressively market their new crop grain not too many weeks from now.
This will undoubtedly bring the usual harvest price pressure led by this contingent, so if you are hoping for significantly better prices you may have to wait until 2011.
