EU Wheat Closing Comments

At the risk of starting to sound boring, EU wheat futures closed narrowly mixed yet again Tuesday. November London wheat was GBP0.25 lower at GBP104.00/tonne, and November Paris wheat EUR1.50 higher at EUR140.75/tonne.

We really seem to be treading water at the moment. We have the barley harvest in France expected to begin this week, closely followed by that in Germany.

We also have the spectre of the USDA's assorted acreage and stocks data due tomorrow.

We have weather concerns, currency uncertainties, the freight market on it's knees and global economic worries aplenty. Is it really any wonder that nobody knows what to do?

If in doubt do nowt, is an old saying in the grain trade, and that is what many seem to be doing. Whether it will prove to be a good idea remains to be seen.

The harvest is underway in America, with prices there wildly uncompetitive compared with Black Sea/EU origins, it would seem like further declines should be seen.

The combines are also rolling in Ukraine, although progress is slow it should soon pick up. They will likely be aggressive sellers no matter what, and then of course we have the Russians. Sellers at less than GBP110/tonne FOB for milling wheat, with the added bonus of a freight advantage.

It's not likely that we are going to see the market up a lot from here in the short term I'd say.