EU Wheat Closing Comments

EU wheat closed mixed with November London feed wheat GBP0.50 higher at GBP101.75 and November Paris milling wheat down EUR1.50 at EUR137.75/tonne.

A weak sterling helped London wheat edge higher, whilst a firmer euro (for once) had Paris wheat on the defensive.

The trade is largely treading water ahead of Thursday's upcoming USDA supply & demand and stocks report, not that any great surprises are likely to be in store for wheat.

With EU prices having fallen sharply in the past couple of weeks since welcome rains arrived in late May, a bit of consolidation also seems in order, at least until we get a clearer idea on yields for the upcoming harvest.

Whilst Black Sea producers will inevitably be keen sellers again once the harvest is underway, there are question marks hanging over output in Russia, Ukraine and Kazakhstan.

Winterkill seems to have been a serious issue in the two first named, whilst spring wheat has been dry seeded in the latter with little rain and temperatures soaring into the upper 30's and low 40's over the weekend.