EU Wheat Closing Comments

EU wheat continues to nudge just a little bit higher every day, aided by ailing currencies and a growing uncertainty over production prospects in many parts of Europe and beyond.

November London feed wheat ended GBP1 higher at GBP108.25/tonne, with November Paris wheat up EUR1 at EUR142.50/tonne.

The euro continues to hover just above four year dollar lows set earlier in the week, whilst the pound remains close to it's lowest against the US unit since March 2009.

All that of course means that EU export prices are amongst the cheapest and most competitive in the world at the moment. UK wheat exports for March were 319,406 MT, leaving us highly likely to exceed Defra's projected 2.2 MMT target for the current marketing year.

Dryness continues to place a sizable question mark over production prospects in the UK, France and Germany.

Things are maybe not looking too rosy in Russia either, according to some reports. Even the US looks like it may have lower yields than had been widely anticipated.

Before you go getting too carried away and lock the silo doors however, it should be borne in mind that eastern Europe will be harvesting before too long and that they will be so hungry for cash they will sell whatever the price.